Development of a pricing strategy

For the workshop equipment area, a pricing strategy was developed, operationalized and documented.

Starting position and objective

• The workshop equipment department is responsible for the development, procurement and sales of special tools and equipment
• For the strategic realignment of the business model of the workshop equipment, the measure “Pricing” was defined as a project order
• The objective is to create transparency in the competitive environment of workshop equipment at manufacturer and wholesale level and to identify and exploit pricing potential

Approach

• Development of a pricing strategy for the competitive pricing of new and existing products
• Identification of revenue- and result-relevant focus products and derivation of a price repositioning of these articles
• Conducting of competitor price analyses and determination of pricing potentials
• Revision of the assortment structure with classification of all articles in newly formed sub-ranges

Results

• Operationalization of the pricing strategy into a pricing tool for various use cases (for example, initial pricing of new products, price rounds for existing products, quantification of the effects of price measures, automated report generation)
• Documentation of the pricing strategy in an action-guiding set of rules