On November 11, 2019, Kai Ostendorf (photo) gave a lecture on pricing at the invitation of Professor Hans-Christian Riekhof at the PFH Private University of Göttingen. He provided an insight into the pricing of the agricultural machinery wholesaler in the B2B environment – before and after the implementation of a pricing tool. The following interview emerged from the discussions held there.
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On Monday, 11.11.2019, the Private University of Göttingen (PFH) hosts the company Fricke. A corporate group that specializes in agricultural machinery, garden technology, and commercial vehicles and is present with 64 locations in 25 countries. At the invitation of Prof. Dr. Hans-Christian Riekhof, Kai Ostendorf, Head of Pricing & Material Master Data Management, is coming.
In his 90-minute lecture, Ostendorf provides an insight into the wholesaler’s pricing in the B2B environment – both before and after the implementation of a pricing tool.
Pricing for spare parts is a particular challenge. This applies not only when it comes to agricultural machinery. After all, it is not enough to offer products in a simple “manufacturing cost plus x” approach and wait to see how the market reacts. Web-based platforms tend to help buyers increase price transparency, but given the complexity and variety of variants, there are natural limits here. The price structure is also very different depending on the submarket and degree of specialization, for example when thinking about spare parts for historical agricultural machinery.
The OEMs (Original Equipment Manufacturer) tend to pursue a high-price strategy for their original spare parts. Distributors counter this with their own cheaper product lines, which they have manufactured in China. Kai Ostendorf describes in his lecture how it is possible to find the “right” prices for 11 million spare parts. A pricing tool is used, which he introduced at Granit Parts together with an external service provider.
The PFH is pleased to welcome interested parties this evening, external guests are welcome.
Location:
PFH Private University of Göttingen
Weender Landstraße 3-7
37073 Göttingen
Date/Time:
Mon, 11.11.2019, 18:00 – 19.30 hrs
The event is free of charge. Registration is required, please by mail to Wieschollek@nullpfh.de.
Photo: Fricke Agricultural Machinery