The isolated concentration on the reduction of costs to achieve higher profitability may result in a destabilization of single processes or even of the whole enterprise. In profitability optimization we therefore more and more focus on the widely underestimated potential of pricing measures. Our Consulting expertise includes the
- Determination of volume- or profit optimized price ranges,
- Development of risk-adjusted pricing models,
- Structuring and documentation of periodical pricing processes,
- Design of sales-increasing commission schemes as well as the
- Supply of instruments for automized price setting in dependance of externalinput factors as costs, market demand and competitor prices.
As our practical experience proofs, very often marginal price adjustments, which are not even recognized by the customer and therefore do not impact the sales volume, may result in a significant increase of profits. In other cases an initially wrong strategic price positioning of products can lead to the surprising result that higher prices go along with higher sales. Correspondingly the installation of a proper price management is one of our key approaches in our projects on profitability optimization and complements the classical analysis of processing time, processing costs and allocation of resources.