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Marketing Magazine Horizont reports on Inflation-Pricing-Study
Under the title “Companies set prices in inflation across the board – No desire for price differentiation”, Horizont, one of the leading marketing magazines, refers to the recently published inflation-pricing study by the PFH Private University of Göttingen. Pricing expert Prof. Hans-Christian Riekhof and Julius Reutel examined in this empirical study in 2022 how companies implement price increases.
“Rising production costs, supply chain delays, ongoing chip shortages and not least the energy crisis are causing companies to drastically increase prices. According to a current study by the Private University of Göttingen on the subject of inflation, 60 percent of the companies surveyed plan to increase prices by at least 10 percent this year, and 30 percent of the companies even want to increase prices by 15 percent or more”, Horizont reproduces some results. “There is obviously a considerable need for action, among other things due to the raw material price situation”, Horizont quotes from the study.
Further links
Full article (paywall):
Companies set prices in inflation across the board
SpringerProfessional reports on Inflation-Pricing Study
Under the title “Many companies are turning the price screw”, the magazine SpringerProfessional picks up on the inflation-pricing study of the PFH. The empirical study of the PFH Private University of Göttingen, created by the pricing expert Prof. Riekhof and Julius Reutel, investigates how companies are dealing with the current price increases and how they are passing on price increases to their customers.
Pandemic-related lockdowns, supply shortages and extreme price jumps on the energy side have left their mark in sales, especially in medium-sized companies, in recent weeks and months, the magazine writes. The price trend at all levels currently only knows one direction: upwards. This now calls for innovative pricing models. Figures from the cross-industry study of the Private University of Göttingen (PFH) make it clear where the journey is going.
More than 60 percent of the companies surveyed therefore want to pass on double-digit price increases to their customers this year, 15 percent are calculating price surcharges of 20 percent and more, 82 percent are passing on price increases that occur in raw materials and preliminary materials, and 72 percent even expect a second price increase this year. “The larger the company in terms of sales, the higher the approval,” the article says.
One of the surprising results of the study: Above all, new customers will be affected by the price adjustments of the manufacturing companies. According to 35 percent of the companies, prices for new customers will be screwed up above average.
The study is based on a standardized online survey, which was accessed by more than 1,100 people from medium-sized to large companies and of which 163 evaluable questionnaires were taken into account.
Further links
Full article:
https://www.springerprofessional.de/pricing/vertriebsmanagement/viele-unternehmen-ziehen-im-vertrieb-die-preise-an/23470916
Hardware Store Manager Reports on locandis’ Digital Signage Solution
The online portal for the hardware store industry writes that with the app-based digital customer card from locandis, customers of the Hagebaumarkt Stammelbach in Hildesheim can receive not only offers but also further product information, details on the availability of goods and prices. This allows them to plan their shopping from home. Since the beginning of May this year, real-time communication with its customers has been made possible thanks to the digital signage solution and a digital customer card from locandis.
Digital Signage Monitors can display individually tailored campaigns
This new development enables communication with customers on the sales floor during the shopping process. On the digital signage monitors, customers are presented with product information, pictorial advertising material, information on events or short videos. If a customer with a digital customer card from Hagebaumarkt is in front of the screen, a campaign can be displayed for this customer that matches his interests, previous searches in the product search or previous purchases.
Digital Signage Solution: Campaigns can be conveniently prepared via the web frontend from locandis
The online magazine also addresses the question of how the campaigns are actually prepared in terms of content. According to the manufacturer, Hagebaumarkt employees can independently create the campaigns with a few clicks via the web frontend from Locandis and display them in real time on the desired screens. Regardless of how many screens have been mounted on the sales floor.
Links
Full article
https://www.baumarktmanager.de/digital-signage-loesung-fuer-hagebaumarkt-stammelbach-10062022
More about the company locandis
www.locandis.de
Price tag with missing differentiation for Euro zone
Pricing expert Professor Hans-Christian Riekhof came across this price tag in July 2018 in a fashion store in Copenhagen. It is very revealing from a pricing perspective, showing that it does not seem worthwhile to further differentiate prices in the countries of the Euro zone. And the visible relation between Euro and US Dollar has little to do with the current exchange rates. All in all, rather evidence that in this company the logistics have more influence than the pricing department.
10.10.2017 │Göttingen – Lecture “Concepts for Higher Value Creation through Intelligent Pricing Strategies”
In many companies, marketing is primarily about two aspects: On the one hand, brand and corporate communication, on the other hand, product management. Pricing is too often of secondary importance. However, the price is a very important factor for profit maximization – and also for customer satisfaction. It is important to determine the price for an offer that corresponds to the customer’s appreciation.
“Studies show that the potential to increase prices is greater, the more the value created for the customer is included in the price determination. Pricing is the most underestimated marketing tool in practice”, knows Prof. Dr. Hans-Christian Riekhof. Using price as a strategic factor for more value creation is used little by decision-makers in marketing and sales.
Prof. Dr. Hans-Christian Riekhof will speak about pragmatic ways to a successful pricing strategy on Tuesday, October 10, 2017 at 7:00 p.m. in Göttingen at the Hotel Freizeit In. The Marketing Club Göttingen as the organizer asks for registration by October 4, 2017 at the latest.
Date of Prof. Riekhof’s lecture:
Tuesday, October 10, 2017
7:00 p.m.
Get together from 6:30 p.m.
Location:
Hotel Freizeit In, Dransfelder Straße 3, 37079 Göttingen