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www.simon-kucher.com
EPP Training – Preview Day 1
Spare Parts Pricing Excellence
Photos:www.colourbox.de
OPEN TRAINING ORG...
Source: Simon-Kucher
All main areas of spare parts pricing will be covered in
the training
Pricing
strategy
1
General obje...
Source: Simon-Kucher
Good parts pricing requires a clear definition of key
objectives – as well as their proper implementa...
Source: Simon-Kucher
List price Driver 5 Driver 6 Driver 7 Driver 8 Final price
List price calculation List-less calculati...
Source: Simon-Kucher
+x% +y% +z%
Competitive
pricing
Simple cost-plus Value-based pricingDifferentiated
marginsPrice
Cost
...
www.simon-kucher.com
EPP Training – Preview Day 2
Service Pricing Excellence
OPEN TRAINING ORGANISED BY
Photos:www.colourb...
Source: Simon-Kucher
What you can expect from this training on Service
Pricing Excellence
Best practice in service pricing...
Source: Simon-Kucher; Field service forum survey 2014, n=~300
How would you characterize the service of your firm?
Accordi...
Source: Simon-Kucher
What we often see: Cost instead of value mindset
Current approach…
Customer
"If needed, could you als...
Source: Simon-Kucher
Service pricing should play a strategic role in your firm
If priced right, service can contribute to
...
Source: Simon-Kucher
Simon-Kucher‘s framework for Service Pricing
Excellence
Analyze and
challenge the
existing customer
s...
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EPP Training on Spare Parts and Services Pricing

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All main areas of spare parts and services pricing will be covered in the training.

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EPP Training on Spare Parts and Services Pricing

  1. 1. www.simon-kucher.com EPP Training – Preview Day 1 Spare Parts Pricing Excellence Photos:www.colourbox.de OPEN TRAINING ORGANISED BY Britt Dejager Tel. +32 51 32 03 72 britt.dejager@pricingplatform.eu Volker Handing Tel. +49 221 36794 319 volker.handing@simon-kucher.com
  2. 2. Source: Simon-Kucher All main areas of spare parts pricing will be covered in the training Pricing strategy 1 General objectives Strategic orientations Pricing approach Parts Pricing Excellence Resources, process, tool, maintenance... Price setting Price implementation Pricing infrastructure Global list pricing International price steering Discount structure Price execution Value communication Change management Monitoring and control Organization IT 2 3 4 Photos:www.colourbox.de EPP_Spare_Parts_Pricing_Excellence_Preview.pptx 2
  3. 3. Source: Simon-Kucher Good parts pricing requires a clear definition of key objectives – as well as their proper implementation Pricing goal What is the goal of parts pricing? E.g. to maximize aftersales profits or to improve customer satisfaction/loyalty to support whole goods sales? Competition How to position parts prices to OES and OEM competition? How to react to competitor price changes? Value pricing How to utilize value drivers to structure parts prices? What parts are priced on value – and which require other logics (e.g. warranty parts)? Brand coordination How to coordinate retail prices as well as terms & conditions between brands? How to position a 2nd line? International pricing How to differentiate prices internationally? Who sets prices in the markets? Dealer network steering How to incentivize dealers to motivate beneficial behavior? E.g. by what criteria to define discount, what to include in the bonus system? Photos:www.colourbox.de EPP_Spare_Parts_Pricing_Excellence_Preview.pptx 3
  4. 4. Source: Simon-Kucher List price Driver 5 Driver 6 Driver 7 Driver 8 Final price List price calculation List-less calculation Net cost Base Driver 1 Driver 2 Driver 3 Driver 4 List price +x% price/ margin -x% discount Example drivers: Parts characteristic Global demand trend Margin situation … Example drivers: Geography Customer size Order size … List price setting as well as discounts and bonuses will be discussed EPP_Spare_Parts_Pricing_Excellence_Preview.pptx 4
  5. 5. Source: Simon-Kucher +x% +y% +z% Competitive pricing Simple cost-plus Value-based pricingDifferentiated marginsPrice Cost +x% Apply a simple mark-up on top of the costs of each part Differentiated mark- ups – typically by parts segment E.g. +50% on filters and +70% on engine parts Competitive parts: consider OES competition Captive parts: consider OEM competition Usually combined with some form of cost-plus Pricing model that uses price change indicators (e.g. difference to competitors‘ prices, price elasticity) to identify price opportunities and adjust prices accordingly Pricing logic Least sophisticated Most sophisticated Description Spare parts pricing can be done in many ways - let’s find out what works best for your company! Photos:www.colourbox.de EPP_Spare_Parts_Pricing_Excellence_Preview.pptx 5
  6. 6. www.simon-kucher.com EPP Training – Preview Day 2 Service Pricing Excellence OPEN TRAINING ORGANISED BY Photos:www.colourbox.de Britt Dejager Tel. +32 51 32 03 72 britt.dejager@pricingplatform.eu Volker Handing Tel. +49 221 36794 319 volker.handing@simon-kucher.com
  7. 7. Source: Simon-Kucher What you can expect from this training on Service Pricing Excellence Best practice in service pricing Framework, tools and practical tips Learning-by-doing with help of a case study Photos:www.colourbox.de EPP_Service_Pricing_Excellence_Preview.pptx 7
  8. 8. Source: Simon-Kucher; Field service forum survey 2014, n=~300 How would you characterize the service of your firm? According to a worldwide survey targeted at manufacturers, as many as 52% of the respondents classify their service offerings as "reactive" Lack of expertise and competence in the support team was cited as the biggest hurdle to overcome Only 8% of manufacturers consider their service to be "predictive" How would you classify your service offerings? Reactive; 52% Proactive 40% Predictive 8% EPP_Service_Pricing_Excellence_Preview.pptx 8
  9. 9. Source: Simon-Kucher What we often see: Cost instead of value mindset Current approach… Customer "If needed, could you also deliver on short notice the next day?" "No problem – this is covered in all of our service contracts." Cost mindset: "This doesn’t cost us more, so the customer doesn’t have to pay more!" …and the right way! "Of course, for only €30 we can offer you our express service." Value mindset: "Service is important to the customer, so he should be willing to pay for it." EPP_Service_Pricing_Excellence_Preview.pptx 9
  10. 10. Source: Simon-Kucher Service pricing should play a strategic role in your firm If priced right, service can contribute to • Generating immediate quick wins • Enhancing customer loyalty • Standing out from competition A B C Depending on assigned role, different service pricing strategies will be required… Service Photos:www.colourbox.de EPP_Service_Pricing_Excellence_Preview.pptx 10
  11. 11. Source: Simon-Kucher Simon-Kucher‘s framework for Service Pricing Excellence Analyze and challenge the existing customer segmentation Who is going to pay for which service? Collecting services and related information in order to specify the different services Classify services into different categories How is the service going to be priced: - Metric/model - Level Service catalogue with existing services as well as prices Develop implementation plan Review results and adapt Customer segmentation Service classification Setting price metrics + levels 1 2 3 Implementation and review 4 Service pricing strategy Clear objective statement of service pricing Basis for systematic setup of service offerings 0 Framework We will illustrate the framework and discuss detailed steps with help of a case study during the training EPP_Service_Pricing_Excellence_Preview.pptx 11
  • MARCOANTONIOMENDOZAO

    Feb. 28, 2021
  • ChristianHeidenreich1

    Apr. 2, 2018
  • PolVanaerde1

    Apr. 6, 2017

All main areas of spare parts and services pricing will be covered in the training.

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