4 goeie redenen om naar Pricing Revisited te komen:
- originele setting in Oldtimerpark in Aalter
- je deelt pricing inzichten met andere B2B beslissingnemers
- je maakt kennis met recente creatieve pricing successen dankzij spreker Omar Mohout
- je krijgt praktische wetenschappelijke inzichten van onze Deense gastspreker en pricing expert Martin Jarmatz
In dit gesprek met ons licht Martin alvast een tip van de sluier.
“Clean and good data is a prerequisite for successful pricing management.”
Hi, Martin, you are researching pricing decisions at the renowned Copenhagen Business School. Quite some focus is on intuition in pricing decisions. I thought pricing was thè most rational decision. Am I wrong?
Martin: Of course, we are talking about a price here, which is a number and therefore rational. However, the way we end up with this number is often a mixture of rationality and irrationality. Often pricing decisions need to be made quick, and under high uncertainty. In such situations, it is impossible to make a 100% rational decision. Here, it is useful to combine intuition with analytics. Research has also shown that in certain circumstances our gut-feeling is more reliable than rational analysis.
Both sales and purchasing tend to fixate on discounts. Can you advice us how to capture value in front of the customer?
In many industries discounts are perceived as generous presents from the seller to the buyer. In my opinion discounts should be rewards for good customer behavior and performance. They should benefit both the seller and buyer. Innovative discount schemes and policies allow for value capture.
“Discounts should be rewards for good customer behavior and performance.”
Can you reveal us the most interesting and innovative pricing capabilities you discovered in industrial markets?
Two capabilities that come directly into my mind relate to value quantification and data granularity. Companies that are able to assess and quantify value have a clear advantage in the market and generally create higher profits. Many companies complain about margin leakage, but are missing the data granularity to clearly identify where they are leaving money on the table. Having clean and good data is a prerequisite for successful pricing management.
Pricing decisions sometimes rather prevent than stimulate sales, don’t they?
There could be many reasons for this statement. One possible issue is a misalignment of incentives. Whereas pricing decisions are often made based on profit intentions, many sales people are incentivized to focus on generating revenues. One can see in a lot of companies that targets and goals are not in line. This can lead to potential conflicts.