price and profit board promo presentation
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Transcript of price and profit board promo presentation
Price & Profit Board
Aachen, 2016
www.steffenhagen-consulting.com
team steffenhagen consulting
Spin-off of the RWTH Aachen University’s Chair for Corporate Policy and Marketing.
Strict focus on the Chemical/Life Science Industry and Mechanical Engineering.
Specialized in: Strategy – Marketing & Sales Excellence – Pricing – Change Management – Organizational Development and Leadership.
Combining our experience in the areas of morphological psychology and business management: business is people.
Implementation specialists, with down-to-earth and hands-on mentality.
2016 © team steffenhagen consulting 2
Customer Feedback
In 2014 and 2015 “brand eins Wissen und Statista“, a
German business magazine, has carried out surveys with appr.
3,000 top managers of consultancy clients and consultants to
analyze which consultancies can be recommended for which
topics and industries.
Referring to the votes of consultancy clients we are in the
top 1.8 % of German consultancy companies and among
the top marketing and pricing consultants.
2016 © team steffenhagen consulting 3
Customers say we are one of the best
Marketing & Pricing Consultancies in Germany
Selected References
2016 © team steffenhagen consulting 4
Our second surf board:
Price & Profit Board
2016 © team steffenhagen consulting 5
Why is Price one of the most important management
functions?
› According to a famous study conducted by Michael V. Marn
and Robert L. Rosiello, in a company with average
economics a 1 % improvement in price, assuming no
volume is lost, increases operating profit by 11.1 %.
› However, it is important to remember that there is no
general rule for the way your profits will be affected by price
changes. It depends on many factors, which are taken into
consideration in our tool.
› Getting the price right is one of the most essential
management functions and our board is here to help you
achieving just that!
2016 © team steffenhagen consulting 6
Price importance – Example
If a medium-sized plastics producer with sales of €100
million increased their average price by €0.01/kg, this
would result e.g. in a €1.5 million increase in EBIT.
2016 © team steffenhagen consulting 7
Typical questions from a project example
1. How would our profit be effected if we increased our
price by 0.5 €/kg?
2. If we increase price by on average 4 %, how much
sales volume may we lose in order to maintain our
profits?
3. Based on assumed volume losses, by how much
should we increase our price in order to grow our
profit by 10 %?
2016 © team steffenhagen consulting 8
All of these questions can be answered using
our Price & Profit Board!
What can the Price & Profit Board do?
Support business-specific pricing decisions and develop a sound pricing strategy
Support you in balancing market share and profit targets with pricing
Help you understand the impact that price, costs and volume changes have on
profit
Help you better understand how important pricing is in specific businesses
Support the adjustment of necessary sensitivity when trying to increase profits
through pricing
Support the sales team during negotiation processes by increasing their self-
confidence to increase the price
2016 © team steffenhagen consulting 9
› It uses the data of price, costs and sales volume from a specific business or business segment
(e.g. product, product groups in total or in a specific industry segment, and/or country/region). It can
also be applied to individual accounts.
› When using the tool you can:
1. See how the profit levers would have to be adjusted in order to fulfil the desired change in profit.
2. Choose the changes in different profit levers and then see and compare the profit
consequences of the different scenarios compared to the current situation in order to find the
best solution.
› The visualization of different scenarios helps you to discuss all relevant options and possible
tactics when setting the price. You will understand competitor-related threats and opportunities
much better. This will be a breakthrough and eye-opener when developing your pricing strategy and
tactics.
› Note: The Price & Profit Board can also be perfectly combined with our Competition Mapping
Board.
2016 © team steffenhagen consulting 10
How it works
Additions
The Price & Profit Board can be combined with the first board from our shop:.
August, 2016 © team steffenhagen consulting 11
› It is based on a compelling visualization of
market and supply shares for relevant market
segments
› Helps to develop and implement sound pricing
strategies and tactics
› Can stop price erosion and avoid price wars
› Saves days and weeks of work and is still easy
to use
The Competition Mapping Board
>>> More information in our Surfshop
Areas of application
› The Price & Profit board can be applied in all
types of businesses and industries.
› The board can be used for your entire business
or for separate business segments, e.g.
products, product groups, or in specific industry
segments, different regions / countries. It can
also be used on a single account basis.
2016 © team steffenhagen consulting 12
2016 © team steffenhagen consulting 13
Screenshot
Price & Profit Board: Features and Benefits
› Self-contained app, independent from browser and internet
connection
› Works on OS X and Windows
› Easy to use
› Flexible data entry, no need to input any formulas
› Easy transfer to PowerPoint and other programs with a snipping tool
› Powerful visualization of profit levers combined with flexibility
› It can help you realistically examine all the scenarios before
implementing a price change
› Invest your time in drawing the right conclusions for your
pricing strategy and tactics!
– Because that’s where you can capture your value.
2016 © team steffenhagen consulting 14
But please do not forget:
A fool with a tool is still a fool.
2016 © team steffenhagen consulting 15
… which is why we’re here to assist you!
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Invest your time into drawing the right conclusions
for your pricing strategy and tactics instead of
drawing bubble charts!
That’s where you can capture your value.
› In order to make sure that you apply your tool to the best
possible effect, we offer consulting, trainings and
coachings on marketing, strategy, key account
management and pricing.
› During our more than 20 years in the industry we have
developed a variety of processes and methods to support
you with your pricing decisions, optimization and
implementation, always based on your particular business
and requirements.
› If you feel like your company’s pricing strategy could use
some brushing up, do not hesitate to get in touch with us!
Contact
2016 © team steffenhagen consulting 17
Olaf Lange
Managing Partner
lange@steffenhagen-
consulting.com
Phone: +49 241-97876-24
Mobile: +49 173-2678 600
Dr. Ralf Schmidt
Managing Partner
schmidt@steffenhagen-
consulting.com
Phone: +49 241-97876-12
Mobile: +49 163-2443 047
team steffenhagen consulting GmbH
Theaterstraße 13 | 52062 Aachen |
Germany
www.steffenhagen-consulting.com
Phone: +49 241-97876-0
Fax: +49 241-97876-10