Project case:
Pricing of large product portfolios
Objective
A particular challenge for a spare parts distributor is the pricing of its large / complex product portfolio. The different characteristics and requirements have to be combined in a coherent, market-oriented pricing process. The results should then be efficiently applied by the pricing managers at gross as well as net price level, including discounts and reductions.
Approach by EbelHofer Consultants
The analysis of the existing product portfolio and the various clients ( -segments) is typically the first step in such a project. Product features, customer requirements, market conditions and also segment specific differences are examined in detail on the basis of available sales and marketing data. These analyses are extended by customer discussions and workshops with internal experts: the results are in turn supplemented by price-quantity correlations (price elasticity) and summarized in a tool to simulate different pricing strategies / scenarios and their effects on sales volumes, revenue and profit.
Result
The client receives a customized, market-oriented pricing strategy, along with optimized gross/net prices for the entire product portfolio and the roadmap for an efficient pricing process with clearly defined steps and responsibilities. A specifically developed and programmed tool is handed over for further use by the client.
