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Rarely have companies faced such challenges in pricing as they do now. The next two-day intensive pricing seminar with pricing expert Prof. Dr. Hans-Christian Riekhof will take place in Hamburg on 30.09./01.10.2022.

Pricing Seminar on 30.09/01.10.2022 in Hamburg

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Pricing is one of the most underestimated marketing tools. It contains a frequently neglected potential for sustainable value creation. Many companies still lack a long-term strategy to deal with the daily, sometimes complex aspects of the pricing process.

In this two-day practical intensive seminar, pricing expert Professor Dr. Hans-Christian Riekhof provides a comprehensible practical methodological framework, a “toolbox”, in which, among other things, 4 levers for increasing the pricing competence of companies are highlighted. These levers are not only explained theoretically, but are applied using practical examples from the participants’ everyday work. Participants, who can come from a wide range of industries, are therefore recommended to bring specific pricing issues from their own work area into the seminar to work on them there.

Early registration is recommended as places are limited.

Read how previous participants rate the seminar
https://www.unicconsult.com/pricing-seminar/teilnehmerstimmen/

Further information at: www.unicconsult.com/pricing-seminar

The ongoing exorbitant rise in purchasing prices for energy and raw materials hits German SMEs hard. Companies should quickly get their pricing in order in the face of rapidly rising or fluctuating production costs - but how? This question is addressed by the Creditreform magazine and asked, among others, pricing expert Hans-Christian Riekhof for his assessment.

Rising production costs force SMEs to optimize their pricing

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The ongoing exorbitant rise in purchasing prices for energy and raw materials hits German SMEs hard. Companies should quickly get their pricing in order in the face of rapidly rising or fluctuating production costs – but how? This question is addressed by the Creditreform magazine in a current article. The business magazine for SMEs (Handelsblatt publishing group) publishes assessments by experts, including Hans-Christian Riekhof as a specialist for strategic pricing issues. One of his key statements: “Companies often approach pricing naively.”

Massive price increases threatening the existence of many companies

The situation is serious, the magazine quotes Stefan Ortolf from DZ Bank. Russia’s war against Ukraine is affecting a large number of medium-sized companies. With regard to the current situation, about 72 percent of the companies surveyed for a current Creditreform study consider the massive price increases to be the biggest challenge for SMEs this year. The situation does not tolerate any delay – companies must act quickly.

Pricing expert Riekhof: Some companies treat the topic of pricing completely naively – this is now taking its toll

Many managers have never seen such price increases. Today’s entrepreneurs often lack experience. As Hans-Christian Riekhof, Professor of International Marketing at PFH Private University of Göttingen and sought-after pricing expert, finds in his empirical studies, some companies approach the topic of pricing very professionally, but some also completely naively. “The latter is now taking its toll. Because those who have not defined a process to put their prices to the test once or several times a year and possibly adjust them, now lack speed, says Riekhof. ”

In addition, the wrong people often decide on price increases in many companies. There should be consensus across the department boundaries of product development, marketing, product management, sales, service, controlling about where to go in terms of price strategy, explains the pricing specialist”, who imparts strategic pricing knowledge and practical action options to managers in regularly held pricing seminars.

Link:
Full article in Creditreform magazine:
https://creditreform-magazin.de/finanzen/preise-erhoehen-pricing/
Screenshot: Creditreform magazine
Is it permissible to make a profit out of fear of the Corona epidemic? US online retailers who offered masks at a massive overprice have now been punished by Amazon. What's behind this?

Corona-Virus, Price Gouging and Amazon

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Is it permissible to make a profit out of fear of the Corona epidemic? In the USA, online retailers have massively increased the prices for the currently highly demanded respiratory masks. According to a report by the news magazine Spiegel, Amazon is currently punishing overly audacious retailers and even banning them from its online platform. The company justifies this with a violation of price guidelines.

Pricing expert Prof. Hans-Christian Riekhof points out an essential aspect: “Anyone who regularly reads our Pricing Newsletter knows the concept of good and bad profits: bad profits are those that come at the expense of the customer relationship. A very sensible and plausible definition, but it is not used in this form in many companies.”

Interestingly, Amazon is different in its approach to such retailers on its platform who have multiplied the prices for the protective masks in the face of the Corona crisis, sometimes by four to five times the regular price. “It seems that bad profits are feared here. After all, in this case, it is not the Amazon profits that are to be waived, but the contribution margins of the retailers on the Amazon platform”, says Riekhof.

According to the US magazine “Wired”, which the Spiegel report refers to, the online retailer has warned several sellers and deleted some overpriced offers from its platform.

Read the US original message that the Spiegel refers to:
https://www.wired.com/story/covid-19-amazon-curb-face-mask-price-gouging/

Photo: Sunyu Kim/Pexels

For the Hamburg magazine New Business, pricing expert Prof. Riekhof has now given an interview. The topic is pricing for luxury.

The Ideal Price for Luxury: Pricing Expert Riekhof in Interview with Marketing and Media Magazine New Business

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For the Hamburg magazine New Business, pricing expert Prof. Riekhof has now given an interview. The topic is pricing for luxury.

For the Hamburg magazine New Business, pricing expert Prof. Dr. Hans-Christian Riekhof has now given an interview. The topic of the detailed contribution, which can be read in the current print edition 6/2020 of the medium focused on the media and marketing communication scene, is strategic pricing in the luxury segment. Under the headline “The higher, the better? The ideal price for luxury” Prof. Riekhof explains the crucial role of price in the luxury segment and how brand managers can find the right price for their luxury items.

Dr. Hans-Christian Riekhof is Professor of International Marketing at the PFH Private University of Göttingen and Managing Partner of UNICconsult Strategy Development. For many years he has been conducting empirical studies on pricing and he advises companies on price strategic orientation and the implementation of pricing strategies.

Learn more about the interview in the New Business magazine here:
https://www.new-business.de/_rubric/index.php?rubric=80

Other articles that might interest you

How luxury customers tick:
https://www.unicconsult.com/pricing-newsletter-no-16-2018/

The Riekhof LSDC model in practice – Why we need a new customer group model for pricing:
https://www.unicconsult.com/pricing-newsletter-no-10-2017-das-riekhof-sche-lsdc-modell-in-der-praxis/

Find more informative articles about pricing strategies at:
https://www.unicconsult.com/pricing-newsletter/

The new business magazine

new business is a media brand of the Hamburg New Business publishing house, founded more than 40 years ago. The weekly print magazine’s editorial team reports on major industry topics in the two main sections Communication and Media, analyses changes in markets, provides background information on current events and gives guest authors a voice.

In addition, the editorial team evaluates creative competitions and incorporates the results of the Redbox ranking. Exclusive news about changes in agencies and media companies, budget pitches, personnel changes, launches of new magazines and portals as well as marketer changes round off the editorial spectrum.

The website new-business.de keeps the media and communication scene up to date every day. From Monday to Friday, the midday news and evening news provide the community with news twice a day. Particularly relevant information is immediately sent out as breaking news.

Participants can once again learn a differentiated approach to the challenges of strategic pricing in 2020 at the seminars of pricing specialist Hans-Christian Riekhof.

The Pricing Seminar Dates for 2020 are here

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The right pricing can have a significant effect on business success, on sales and profit margins. However, many companies still do not have a formulated pricing strategy or – if they do – neglect relevant aspects in the pricing processes and underestimate the dynamics of the markets and the influence of their pricing policy.

Participants can once again learn the right approach to the challenges of strategic pricing in 2020 at the seminars of Hans-Christian Riekhof. For the coming year, there are currently four dates available in Hamburg from the long-experienced pricing specialist:

on 19/20 March 2020
on 18/19 June 2020
on 1/2 October 2020
on 3/4 December 2020

In the intensive seminar, the marketing professor of the Private University of Göttingen (PFH) provides participants with relevant and immediately applicable expert knowledge about strategic pricing. Participants learn in a practical way how to formulate the building blocks of a long-term pricing strategy, the correct review of pricing processes, how to improve price communication and how to introduce efficient price controlling.

The venue is the proven Gastwerk Hotel Hamburg. With its stylish ambience and ideal premises, with its pleasant tranquility and good service, it offers the ideal framework for Professor Riekhof’s intensive seminar.

Links:


Learn more about the Pricing Seminars here.
Read what previous participants have to say!

Interested parties can now register for one of the seminars.
Secure one of the coveted places now!

Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. The project, which initially runs in the pilot region of Berlin and Brandenburg, raises questions in its orientation.

Pricing at Lidl: Discount store attracts with app as digital customer card

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Lidl is currently testing digital customer cards, with which coupons can be delivered directly to the mobile phone. In Berlin and Brandenburg, customers can use the new customer loyalty app “Lidl Plus”. With this, they receive special offers and features such as discount coupons, digital receipts or the flyer ready for every purchase. It is noteworthy that the coupons are not delivered location-based, says pricing expert Hans-Christian Riekhof.

Lidl Digital Customer Card

The free app, available from the Apple and Google app stores, serves as a digital customer card. Lidl has come up with a number of “exclusive benefits” for users. For example, a 5-euro welcome coupon, new digital discount coupons for selected products and savings benefits with the so-called “Lidl Plus crackers”. Also scratch cards with further coupons and price advantages with partners, e.g. at Lidl-Photos, Lidl-Travels, FlixBus and regional, activate providers in the app.

In return, the discount giant receives valuable customer data. Lidl can thus compensate for the major disadvantage of stationary compared to online trading, where it is common to collect and evaluate customer data. Based on customer profiles created from this, the app can then make offers to the customer that Lidl assumes the customer needs at this time.

With the customer data, Lidl sends suitable offers to the app users

According to Lidl, customers do not see different prices based on their data. However, there is indeed a price difference in favor of the app users – compared to customers who do not use the app.

With the digital customer cards, Lidl is faster than e.g. Aldi, the main rival, says Hans Christian Riekhof. The pricing expert finds it interesting that the app is advertised on various local channels – here the example Out Of Home. Even more noteworthy is that the coupons are not delivered location-based. “You could also deliver the push notifications in front of the store, in the store and maybe even directly on the shelf. This would significantly increase the relevance – measured by opening and redemption rates – according to our project experience. Maybe this will come in the second expansion stage”, says Riekhof.

Which campaigns promise particular success can be read in the News from locandis.

By the way, the project of the digital customer card, which is currently running in around 250 Lidl markets in the pilot area Berlin and Brandenburg, is planned to be extended to all of Germany during the year 2020.

Note:
Also read our empirical Study on Digital Customer Cards in retail, system catering and tourism (Riekhof/Brinkhoff 2018).

Further links:

Lidl:
https://unternehmen.lidl.de/pressreleases/190612_lidl-plus

Advertising and Selling:
https://www.wuv.de/marketing/lidl_bringt_digitale_kundenkarte_als_app


Photo at the top: Lidl Germany
Photo: UNICconsult Strategy Development GmbH

Kaufland has expanded its private label offering. The new brand "K-Favourites" is aimed at those who want to "treat themselves to something special in everyday life." In terms of pricing, private labels are an important, strategic component of the retail assortment and can - if used correctly - contribute disproportionately to the company's results.

The K-Favourites Line: Strategic Pricing for Private Labels at Kaufland

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The food retailer Kaufland has now expanded its private label offering. The new value-added brand “K-Favourites” offers around 160 items. It is aimed at all people who want to “treat themselves to something special in everyday life.”
The quality brand complements the price spectrum between entry-level and premium.

The brand is intended to offer clear added value, such as extraordinary ingredients, a special place of production or
a long maturation period. The range extends from pasta and meat to chips and chocolate to dairy products and delicatessen. It is supplemented by products from the pet food and hygiene sectors. “Private labels are more than just a remake of A-brands today. With the top products from K-Favourites, we are going our own, confident way”, explains Stefan Hüttemeister, Managing Director Brand Management International at Kaufland.

Pricing for private labels: Kaufland occupies not only the entry-level price ranges

Dr. Hans-Christian Riekhof, Professor of International Marketing at the Private University of Göttingen, sees private labels as an increasingly important, strategic component of the retail assortment. “They contribute – if done correctly and especially in the long term – disproportionately to the company’s results. In addition, they help to create a price architecture in the assortment in which the entry-level price ranges are also adequately represented.” For the pricing expert, they are both “assortment and price strategically an extremely important response of the trade to
the price pressure in the market”.

What is remarkable about the Kaufland strategy, which other retailers also strive for, is that with the private labels not only the entry-level price ranges are occupied, says Riekhof. “Such an assortment and price strategy will have to be worked on in the long term in order for it to fully pay off. The brand manufacturers in the middle price ranges will be the first to notice when they are delisted.”

Photo: © Kaufland

Further links:

Kaufland Homepage:
https://unternehmen.kaufland.de/presse/pressemitteilungen/pressemitteilungen-detail.y=2019.m=09.n=neue-eigenmarke-k-favourites.html

Lebensmittelpraxis:
https://lebensmittelpraxis.de/handel-aktuell/25311-k-favourites-kauflands-neue-eigenmarke-2019-09-03-11-12-34.html

Supermarktblog.com:
https://www.supermarktblog.com/2018/09/25/k-favourites-ist-da-jede-woche-eine-neue-kaufland-eigenmarke/

Focus (Preview, 26.03.2019):
https://www.focus.de/finanzen/news/vollsortimenter-und-discounter-kaufland-mit-neuer-mittelpreismarke-favourites_id_8670631.html

In its current newsletter "Grone Digi-News", the educational institute picks up the lecture "Digitization of our lives" by Prof. Dr. Hans-Christian Riekhof, which he held as a guest speaker at the Grobe Education Center in Hamburg-Hammerbrook.

Grone Digi-News picks up lecture by Pricing Expert Riekhof

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The Grone Educational Institute in its current newsletter “Grone Digi-News” particularly addresses the topics of Work 4.0 and personnel development. The newsletter picks up the lecture by Prof. Dr. Hans-Christian Riekhof on the focus topics “Digital Education” and “Digitization of our lives”, which he held as a guest speaker as part of the Heinrich-Grone conversation series on 07.11.2018 at the Education Center Hamburg-Hammerbrook.

Under the title “The digitization of our lives – Why we should not be afraid and which digital trends will determine the next 30 years”, Riekhof, professor of international marketing at the Private University of Göttingen (PFH), explained how digitization has already changed the world and what developments are still to come.

Read the detailed report on his lecture, which is on the homepage of the Grone Educational Institute, under the following link:

https://www.grone.de/ueber-uns/aktuelles/hamburg-die-digitalisierung-unseres-lebens/

Link to the newsletter:
http://archive.newsletter2go.com/?n2g=f9ocmthj-m79u74rq-k1m

Yuqian Xu, Professor of Business Administration at the University of Illinois, conducted a study on "The Impact of Mobile Payment Channel on Consumer Consumption: Evidence from Alipay" in China with Anindya Ghose and Binqing Xiao. The results are interesting in several respects.

Influencing customer behavior with mobile payment solutions

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Yuqian Xu, Professor of Business Administration at the University of Illinois, conducted a study on “The Impact of Mobile Payment Channel on Consumer Consumption: Evidence from Alipay” in China with Anindya Ghose and Binqing Xiao. “These research results are particularly relevant because locandis offers digital customer cards that include a payment function in addition to location-based content and coupon campaigns”, explains pricing expert Prof. Dr. Hans Christian Riekhof, co-managing director of locandis GmbH, a company specializing in digital customer cards and location-based marketing.

Here are the key findings of the study:

  • After the introduction of mobile payments in China, the total frequency of transactions increased by more than 23% on average.
  • The adoption of mobile payment is associated with an increase in so-called “hedonistic” shopping motives. This could be loosely translated as impulse buying.
  • Mobile payment has the greatest influence on products that are associated with low costs or prices and are purchased at high frequency.

The summary of the key findings can be read at the following link:
https://www.sciencedaily.com/releases/2018/11/181129114134.htm

The original study can be downloaded here:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3270523

Photo: locandis GmbH

 

The German Craftsmanship Newspaper discusses in a current article the question of how craftsmen can enforce higher prices. The editorial team found professional advice from Prof. Dr. Hans-Christian Riekhof of UnicConsult, pricing expert at the Private University of Göttingen (PFH).

German Craftsmanship Newspaper quotes Pricing Expert Riekhof

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The German Craftsmanship Newspaper discusses in a current article the question of how craftsmen can enforce higher prices. The editorial team found professional advice from Prof. Dr. Hans-Christian Riekhof of UnicConsult, Pricing Expert at the Private University of Göttingen (PFH).

The higher the prices, the higher the profit. A simple calculation, but one that does not always work in reality, the paper knows. Because customers demanded price reductions, competitors pushed prices down or simply lacked the courage. So the question is: How can craftsmen enforce higher prices?

The economy is good, unemployment is low, the demand for craftsmen’s services is high, writes Sebastian Wolking in the article. This is a good opportunity to push prices up. Secondly, increased raw material costs are an argument that is perceived as fair and plausible. “The customer accepts this more readily”, says Hans-Christian Riekhof, Pricing Expert at the Private University of Göttingen (PFH).

One point where craftsmen in particular could start is discounts. Discounts, the newspaper continues, cut into the financial flesh, reduce the margin. “There is basically nothing wrong with discounts”, says Riekhof. “But every discount must have a solid justification.”

Read the whole article at:
https://www.deutsche-handwerks-zeitung.de/wie-handwerker-hoehere-preise-durchsetzen/150/3100/380768

Download the article as a pdf:
https://www.unicconsult.com/wp-content/uploads/2020/03/wie-handwerker-hoehere-preise-durchsetzen-dhz-net.pdf