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How to formulate and implement a long-term pricing strategy. What is the profit lever? A free online lecture on 29.08. by the IHK Lüneburg-Wolfsburg with pricing specialist Prof. Riekhof provides information.

29.08.2024 – Pricing Model – a potential profit lever? Free Online Event

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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

by Prof. Dr. Hans-Christian Riekhof

02-2024_Pricing-News – The Organization of Sales: Key to Implementing the Pricing Strategy

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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