PRICING

 

Is your pricing strategy enabling you to extract  the warranted value from the customer?

Does you company have a pricing strategy,  are your prices based on a “reasonable” additon to your costs?   

It is likely that you have already minimized your costs;  and merits of cost plus pricing is also  questionable, i.e. , which costs do you take into consideration, variable or fixed? 

Why  should you be affected or can you avoid  being  affected when an adverse economic cycle appears?  How might a cleverly designed pricing strategy help you?

Or are you following the steps of competition? What happens if they have miscalculated?

Warren Buffet said: “If you have to have a prayer session before raising prices,.. then you’ve got a terrible business”.

Likewise, Jeffrey Immelt of GE said: “When it comes to prices we pay, we study them, we map them, we work on them. But with prices we charge, we are too sloppy”.

How  do you price the residences, offices which you construct and put on the market?  Do you examine the price sensitivity of different customers vis a vis architecture, different bathroom and/or kitchen furniture?  Or do you benchmark competition, or the latest transactions which have taken place in the market?

Do you analyse the value which customers attribute to different features of your products, and how you might impact the demand and the willingness to pay of customer for certain product features?

These may sound unusual questions, but Simon-Kucher Partners has specialized in this domain since 1985.  It has successfully been advising companies from a very wide range of industries in 17 countries with 560 specialized consultants.

We added  the Turkish market on the map of Simon–Kucher partners last June and Kurdoğlu Consultancy is collaborating with this well established company in helping companies operating in Turkey to increase their EBIT.