Pricing Process Part 4: Implementation

The optimization steps within the framework of the price structure are followed by the implementation of prices in the market. List prices are the starting point for price negotiations. The actual price parameter in the discussion with customers is the discount—or more comprehensively formulated—the condition system. Target segments and negotiating partners differ in many ways. The condition system must reflect these customer differences. Therefore, a list price is defined with a view to the target positioning (value to customer). This gross price is the starting point for a discount differentiation, in which attractive customers receive targeted incentives. The value of customer—i.e., the importance of the customer for the company—is rewarded with corresponding price reductions. In addition to the structural approaches to sales management, there are also numerous levers for increasing earnings in the area of tactical measures. In the case of price increases, it is in the interest of the company that these are not recognized as such as far as possible. This is highly relevant in the current situation of cost inflation. Numerous tactics can be used to enforce higher prices.