A detailed knowledge of customers' ability to pay is still one of the central challenges for many companies, and also one of the greatest drivers of potential. If we can succeed in creating a situation where prices are no longer fixed on a cost basis, but according to customer value, then we can pave the way for significant earnings increases.
It depends on the method
Today, there are a large number of methods and approaches for systematically estimating customers' ability to pay. Using some of the possible approaches
- conjoint analysis
- classic van Westendorp
- advanced van Westendorp (our own R&P development – presented at international conferences)
- value scoring models
we develop an individual toolbox for the pricing process, together with yourselves. This ensures that your company not only has one standard pricing process method, but also that it always uses the most appropriate method. Using a combination of quantitative and qualitative analyses, we identify possible methods for you to subsequently realize your earnings potential.
On the way to value pricing
Due to the increasing service orientation of many industries, specific price management offers many interesting options. Furthermore, in the areas of service and spare parts, customer value often bears no correlation to the costs actually incurred. Therefore, the subsequent implementation of value pricing does not only include new products, but also all existing products. Moreover, globalization forces the creation of differentiated solutions for countries and regions. In this regard, scoring models and country clusters can be a useful and rapidly achievable starting point.
Connecting science and practice
Thanks to the connections of Prof. Roll's head of price management, we are familiar with the latest and most efficient methods. Due to our many years' experience of consulting, we know which approaches lead to pragmatic solutions for companies. Together with yourselves, we develop tools and a pricing structure which specifically implement value pricing, thereby making use of detailed quantitative and qualitative analyses. We then decide, together with yourselves, which of the identified solutions best suits you and your company.