You can quantify what you can do for your customers, and make a better price. “There is an opportunity to learn what your customer’s needs are. Paolo De Angeli, Pricing Group Expert at Borealis, Austria has noticed that the industry that was once at a very low level in terms of digitalization and e-commerce is now booming, leaving companies with the urgent need to reinvent, commoditize, and use transparency to differentiate: Now companies are not looking at a single country as a market, but are comparing with other similar companies on the global market. New pricing strategies, new sales channels and companies’ own web shops call for adoption of channel management methods that can help companies to keep and harmonize both online and traditional distribution partners. Companies are now able to more accurately identify what kind of value they can provide to their customers in comparison to competitors and therefore better personalize and target their buyers. Greater transparency and the fact that you can analyze a competitor better than ever leads to better evaluation. This is also underlined by Katrin Huberth, Distribution & Pricing Manager from Puls GmbH, who explains how e-commerce is changing this and almost every other step on the value pricing path:įirstly, prices are becoming more transparent and easily accessible via the Internet, “You enter product number and you immediately find information about where to buy a product and at a what price, and you also find information about competitors, which leads to new opportunities and challenges.”. Möller has noticed that one of the threats to stable value-based pricing management is that customers can easily go online anywhere in the world and check prices. Lars Möller, General Manager – After Sales, at equipment distributer company, Al Shirawi Enterprises based in Dubai, UAE, who has more than 20 years of experience in the heavy equipment industry and commercial business and has been in senior after-sales management roles covering service and spare parts, thinks that digitalization and value based pricing in the manufacturing industry is an “ongoing battle, new players coming in, new ideas,” walso makes the manufacturing world very interesting. ( McKinsey).So far digitalization has changed many business processes and has affected pricing mechanisms of companies which display and sell their products online. The Copperberg podcast on digitalization and value-based pricing moderated by Gerhard Rill, Head of Pricing and Proposal at Airbus Germany, gathered experienced pricing experts from manufacturing industry around the world.īy definition, creating a value-based price relies on the process of evaluation of how much a product is worth to a given customer, understanding how those factors compare with competitors’ offers, and quantifying the value created for the customer. Products are put online worldwide, their price and features are more transparent than ever, and new sales channels and pricing processes are and have to be constantly reinvented. Nowdays, digitalization is constantly changing the rules of game. However, today’s online marketplaces lack a sense of exclusivity and warm personal communication, and even good old-fashioned negotiation. A value-based price is very much connected to customer’s experience and impression.
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