Price and discount management
Marketing-
Services
Bringing transparency to prices and discounts
Setting the right price is a strategic success factor. There are many aspects to consider: Is the price determined as a mark-up calculation or are competitor prices systematically collected and taken into account? Are prices defined globally or is price segmentation carried out according to customer and article clusters, e.g. with mark-ups and mark-downs? What about discounts to attract new customers or retain existing ones?
Whether cash discounts, bonuses, graduated discounts, special discounts or discounts in kind - there are often no limits to creativity in B2B business. But are the effects on the result always transparent? The right price and discount management requires a deep understanding of market dynamics and customer behavior. We therefore focus on the following aspects:
- Pricing & discounting analysis: This involves collecting and analyzing data on costs, customer behavior, market trends and competitors' pricing strategies. It helps to identify pricing opportunities, understand price elasticity and determine optimal price points.For discount programs, eligibility criteria, discount amounts, eligible products or services and duration must also be defined.
- Pricing strategies: Companies need to develop pricing strategies based on their goals and market positioning. Common strategies include cost-plus pricing, value-based pricing, price skimming or price penetration.
- Monitoring and optimization: Continuous monitoring of price and discount performance is crucial to assess the effectiveness of the strategy. This includes monitoring sales, profit margins, market share, discount claims submitted, customer feedback and competitor pricing. By analyzing the data, companies can identify areas for improvement, adjust prices as needed and refine their pricing strategies over time.
Effective price management pays off for companies in several ways - through higher profitability, a larger market share and greater customer satisfaction. With targeted analysis, planning, process control and simulation within an integrated solution, you can also keep discount management under control! Predefined workflows make it possible to apply for various discounts at different levels of the article and customer structure, simulate the effects on the results and release the discounts accordingly. We are also happy to support you in optimizing your price and discount management!
Our services for you
Design target processes
In joint workshops, we define your individual target planning process for optimal tactical and strategic price and discount management. We determine the most sensible target process for your company situation either on the basis of our best-practice templates using GAP Fit or using the Green Field Approach.
Optimization of your price management
Optimize and automate price planning
Use the potential of modern technologies and methods for automation: Clustering methods can make a valuable contribution to define a price segmentation depending on customer and article clusters, e.g. with markups and markdowns, and not to get lost in the details. Modern projections can incorporate the different price levels through price sensitivities directly into the forecast of your sales.