AFTERMARKET PRICING EXCELLENCE
Pricing is the most powerful lever to sustainably boost profitability. To gain higher pricing power, the pricing strategy should reflect the value perceived by the customer while it is also aligned with the market position you pursue strategically.
With more than 50 years of combined experience in the implementation of value-based and market-driven pricing for industrial companies, the LucidPrice team knows how to find the optimal price, and helps your business set the right prices to capture the desired value. Our methodology covers all aspects of list pricing, net pricing, and revenue management when it comes to product, spare parts, and service pricing.
Get the fundamentals right
While technology tools enable the sales process of selling spare parts and services for industrial companies, it is still crucial to get the fundamentals of pricing right. Anomalies and bad pricing are even easier to detect with higher transparency in today's markets.
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Low-quality pricing opens the door to never-ending negotiations, over-discounting, lost margins, and lost trust.
Aftermarket
Pricing
Aftermarket pricing excellence refers to the practice of optimizing and strategizing the pricing of products and services offered after the initial sale of a product. This process involves setting competitive and customer-focused prices for spare parts, maintenance, accessories, and other post-sales offerings.
Journey starts with setting refrence prices
Global Reference Price
Market/ Channel Price
Customer List Price
Net Price
Moving away from pure cost-based pricing starts with setting value-based and attribute-based price logic defining a global reference price.
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Such price logic creates the base to enable the whole organization to explain and defend prices towards the end customers.
Market and channel price harmonization
Market or channel pricing is about adjusting the reference price logic to the right level that fits the market or channel conditions.
Applying the same logic with the right level will result in global price harmonization across product assortments and markets/ channels resulting in similar price communication towards the market as well as controlled cross-boarder trading risk.
Net pricing and incentives
Having high-quality prices with the right level in place is the backbone of effective sales guidance. While salespeople can effectively explain and defend the pricing, they can take further steps in an effective negotiation process providing the right incentives based on desired and actual customer purchasing trends.
Off-invoice Incentives
On-invoice Incentives
Customer List Price
Net Price
Starting Price
Target Price
Floor Price
5% to 20%
Improved Gross Profit
is a typical outcome of aftermarket pricing excellence initiatives
Aftermarket pricing excellence initiatives are one of the most lucrative initiatives that a manufacturing company can take on.
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The outcome of such initiatives is actual prices for markets which immediately provide tangible results by improving margins and volumes.
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