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29.08.2024 – Pricing Model – a potential profit lever? Free Online Event
How can a long-term pricing strategy be formulated and implemented – and what is the profit lever? Interested parties can find out on August 29 from 9 to 10 a.m. at a free online lecture by the IHK Lüneburg-Wolfsburg. Pricing expert Professor Hans-Christian Riekhof illuminates the building blocks of a well-thought-out pricing policy, explains pricing processes and what constitutes effective price controlling.
The topic of costs plays a very important role in many companies. The same does not apply to the price or pricing, this topic often receives significantly less attention, as empirical studies by Riekhof have shown. The potential that the sometimes considerable profit levers enable is therefore often unused.
Questions on the topic and the event are answered by Thomas Rekowski, IHKLW business development consultant, Tel. 05141 9196-22, thomas.rekowski@nullihklw.de.
Date:
29.08.2024
Time:
9:00 a.m.
Duration:
approx. 50 minutes
Registration requested at:
https://www.ihklw.de/PricingModell
Further information:
https://www.ihk.de/ihklw/service/presse/presseinfos/pricing-modell-6227676
Review for the LEH: Interview with Pricing Expert Riekhof
In the current issue of the Review for the Food Retail Trade, pricing expert Hans-Christian Riekhof is interviewed. The focus is on pricing. In times of rising costs, melting margins and digital processes in food retailing, the question is exciting as to how discounts can be used more targeted and personalized, it says in the preface. Because a strategy like “Three percent for all” is not the right way, says pricing expert Hans-Christian Riekhof. And he also has solutions ready for the service topic of instore navigation. Riekhof is always amazed that retail companies currently have so little data knowledge about customers in the store.
Links:
Full article in the Review for the LEH:
– RUNDSCHAU for the Food Trade 12/2022
Full article as pdf:
– RUNDSCHAU for the Food Trade 12/2022, Pages 22-25
More on the topic of Instore Navigation:
www.locandis.de
Instore Navigation – Guidance in indoor and outdoor areas
Pilot Project at Penny: Do Anchor Prices Work for Groceries?
What is the real cost of food when all costs are included in the price? The grocery discounter Penny has now calculated the “true” prices of food and compares them directly with the previous prices. These include costs caused by over-fertilization, loss of biodiversity, and greenhouse gases.
The news was quickly picked up by the media. For example, the Süddeutsche Zeitung reports on the pilot project of the discounter in Berlin Spandau, where a so-called sustainability market has been opened. There, a second price is displayed next to the regular sales price on the supermarket shelf. According to the retailer, this is based on the “true costs”, on the calculation of the “True-Cost-Approach”, explains Stefan Magel, manager of the Rewe Group, to which Penny belongs.
Meat would be three times as expensive
For consumers, the newly calculated prices are probably not very pleasing. Normal minced meat, for example, would be almost three times as expensive, organic minced meat would be more than double. A liter of simple H-milk would be 1.75 euros instead of just 79 cents. Organic fresh milk would then cost 1.84 euros instead of the previous 1.09 euros.
“True” Prices at Penny as Anchor Price Strategy
Pricing expert Prof. Dr. Hans-Christian Riekhof from UNICconsult with expertise in retail sees this first attempt of its kind in retail as an anchor price strategy. “Our Pricing Newsletter readers know, why anchor prices should be set and how they work in the consumer’s psyche. Nothing else is the attempt by Penny from a psychological point of view to display the true costs of food on the shelf. These true costs include all ecological damages not included in the shelf price – economists would speak of external effects.”
Whether this type of anchor prices will work for consumers will show, says Riekhof. That politicians see a need for action here is probably rather unlikely. In any case, one can only congratulate Stefan Magel on this concept – a courageous step.
To the article in the SZ:
https://www.sueddeutsche.de/wirtschaft/einzelhandel-fleisch-dreimal-so-teuer-1.5017005
More about anchor prices and their psychological effect on consumers:
https://www.unicconsult.com/pricing-newsletter-no-27-2019-was-sind-ankerpreise/
Photo:
StockSnap, pixabay.com