price and profit board promo presentation

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Price & Profit Board Aachen, 2016 www.steffenhagen-consulting.com

Transcript of price and profit board promo presentation

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Price & Profit Board

Aachen, 2016

www.steffenhagen-consulting.com

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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

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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

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Selected References

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Our second surf board:

Price & Profit Board

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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!

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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.

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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 %?

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All of these questions can be answered using

our Price & Profit Board!

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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

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› 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.

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How it works

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Additions

The Price & Profit Board can be combined with the first board from our shop:.

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› 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

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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.

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Screenshot

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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.

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But please do not forget:

A fool with a tool is still a fool.

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… 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!

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Contact

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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

[email protected]

Phone: +49 241-97876-0

Fax: +49 241-97876-10