Service Parts Pricing 4.0
Head office sets a price for a replacement part, but bonuses, rebates, discounts and any number of unpaid extra services mean that the price actually received is well below the one targeted? The sales of a part skyrocket, but the fact that it is being sold below cost remains undiscovered because only the total sales of all service parts is analyzed – and they seem to look okay?
Companies still put 80 % of their energy into abstract pricing, while they fail to devote nearly enough attention to how they actually want to assert that price on the market.
Would you consciously forego sales and profits? Because, de facto, that is what the lack of an overall price strategy means!
A well-structured total concept with both ‘Set the Price‘ and ‘Get the Price‘ secures sales and margins that are much higher than can be achieved by rule of thumb, intuition or the usual processes of extrapolating historical data.
But how can you make such a concept? What has to be considered? What mistakes avoided? Which mathematical models should be used?
Read here how a well-designed overall concept can contribute to your company‘s success!
You would like to know more?
Ask Dr. Andreas Baader.
Dr. Andreas Baader
+49-89 - 749826 - 0