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Mercedes-Benz revolutionizes the sales model! What does this mean for your pricing strategy?
Mercedes-Benz has recently changed its sales model and abolished the traditional price lists to offer more transparency and flexibility. This is reported by various media (including “Auto, Motor und Sport”, chip.de). But what does this mean for companies that also need to rethink their pricing strategies?
The abolition of fixed price lists at Mercedes-Benz could have a signaling effect: customers increasingly expect transparency and tailor-made offers. However, such a model requires an extremely agile and well-thought-out pricing strategy. Companies that rigidly adhere to traditional pricing models could quickly fall behind. Instead, a dynamic pricing model that adapts to market conditions and individual customer requirements could play a decisive role.
Instead of fixed price lists, more transparency and flexibility
But beware: With flexibility comes complexity. Pricing becomes more demanding and requires a precise market analysis and a deep understanding of customer needs. This is where the pricing strategy of UNICconsult comes into play. Our RSEC model (Research, Strategy, Execution, Controlling) ensures that your pricing strategy not only meets current requirements, but is also future-proof.
Mercedes-Benz’s decision regarding traditional price lists shows that the market is ready to take new paths. Companies that adapt their pricing strategies early can benefit from this change and secure competitive advantages.
Don’t miss this opportunity! Now is the perfect time to rethink your pricing strategy. Contact the experts at UNICconsult and get your company fit for the future!
Photo: pixabay.com
02-2024_Pricing-News – The Organization of Sales: Key to Implementing the Pricing Strategy
PRICING NEWS
The Organization of Sales: Key to Implementing the Pricing Strategy
by Prof. Dr. Hans-Christian Riekhof
Pricing strategies are of little use if they are not implemented in the market and with the customer. I have written about this in my Pricing Newsletters No. 65, No. 59, No. 56 and No. 46, and I have also repeatedly emphasized elsewhere that the implementation of strategies requires its own management tools. You can find more about this in my book published by Schäffer Poeschel “The 6 Levers of Strategy Implementation”.
As for the approach to implementing pricing strategies, Britta Seeger, the sales manager of Mercedes-Benz, currently provides a nice example. The Handelsblatt reported on this on 19.02.24. What is Mercedes-Benz planning?
– Mercedes has converted the sales to an agency model. This means that the price sovereignty no longer lies in the branches or with the dealers, but that the headquarters sets the strategic price course.
– The IT systems are standardized in this context, and this also means that the headquarters has sovereignty over the customer and transaction data.
– This largely prevents “discount battles”.
– The Mercedes-owned branches are to be sold to external dealers. According to Mercedes, 80 businesses and 8,000 employees are affected.
– The total sales area is to be reduced by 20%.
This is a big task that needs to be tackled. But in order to actually enforce prices in the market and towards customers, appropriate processes, systems and enforcement options are needed.
Initial successes are already becoming apparent: according to information from the Handelsblatt, the average sales price for Mercedes cars has risen from €51,000 in 2019 to almost €75,000. This is of course also due to the vehicle mix. But the consequences for profitability are obvious. We are curious to see how the implementation will continue.
Best regards from Hamburg
Yours
Prof. Dr. Hans-Christian Riekhof
Photo:
Where are the prices finally decided when buying a car?
Source: © iStockphoto
Thanks to good price enforcement: Mercedes Benz doubles profit
In a current article of the news magazine Der Spiegel, the billion-dollar profits at Mercedes Benz are discussed – made possible despite current crises with supply shortages, energy cost explosion and inflation. In our “Pricing-Newsletter No. 60 (2022): Luxury Pricing – What Power of Pricing means for Mercedes Benz in the future” we went into more detail on the corporation’s new marketing and pricing strategy. As Der Spiegel writes, the car manufacturer Mercedes has doubled its profit thanks to “good price enforcement”.
Links:
Pricing-Newsletter No. 60 (2022): Luxury Pricing – What Power of Pricing means for Mercedes Benz in the future
https://www.unicconsult.com/pricing-newsletter-no-60-2022-luxury-pricing-was-bei-mercedes-benz-kuenftig-power-of-pricing-bedeutet/
Billion-dollar profits at Mercedes-Benz and Deutsche Bank
https://www.spiegel.de/wirtschaft/unternehmen/mercedes-benz-und-deutsche-bank-melden-hohe-gewinne-a-ff76b172-471b-45f1-87ab-ee8ce86d45be
Photo: Mercedes Benz/UnicConsult
