Becoming a profit optimiser
The document provides an approach on how to optimise prices within the automotive aftermarket industry. It deals with the following topics:
Fundamentals of Automotive Pricing
Which first explains the power of Pricing and secondly explains that a clear view on the overall situation is required in order to be able to establish your concrete Pricing Goals & Objectives that you want the Pricing Optimisation to result to
Transition from Price Administration to Profit Optimisation
Pricing of service parts is highly complex. The challenge is to set and maintain the best price, i.e. the price which accurately corresponds to the value proposition, for each and every part. The appropriate pricing technology can support companies in this.
Building Blocks of Pricing
The building blocks of pricing can be separated in four broad areas, i.e. Strategy, Execution Optimisation, Measurement & Control... . Each of these areas will be explored on how it can help companies optimise their pricing in the aftermarket industry. However focusing on any one group of capabilities will not improve pricing performance; they are an integrated problem
To conclude the report refers to the 14 key differences between Pricing Administration and Profit Maximisation will be given and briefly explained.