New gold sponsor at AMAN 2014: Navetti

The European Pricing Platform (EPP) is pleased to announce that we have added pricing software vendor, Navetti, as gold sponsor on our upcoming Aftermarket and Manufacturing pricing forum (AMAN 2014) in Amsterdam.  One of the most important criteria for practitioners when selecting a software vendor is the pricing competence of the people delivering the solution.  Navetti provides full support on pricing projects, from high level project planning together with their client’s strategy team to daily queries of people working with their pricing software.  By sharing their knowledge and expertise, EPP and Navetti look forward to bringing the pricing maturity of Aftermarket and Manufacturing firms across Europe to the next level.

Mature economies, like Europe, are likely to grow slowly for many years to come, as volumes and margins remain under pressure.  However, an abundance of opportunities still exist for unlocking profit optimisation potential by paying closer attention to our pricing practices.

Organisations often fail to take advantage of the obvious benefits that strategic pricing practices can bring, listing reasons such as:

• The lack of manpower and resources in pricing teams.
• Limited, frequently inaccurate benchmark information on competition.
• No access to reliable, clear and structured cost to serve info and other data.
• Fear of losing market share when adapting prices.
• Lack of understanding of value drivers per segment.
• Price execution and sales operations are too loosely controlled.

At the AMAN Forum in Amsterdam, on 19+20 March, pricing experts from companies like Demag Cranes, Federal Mogul, and Maserati will help attendees set up a plan of action for steering these and other typical Aftermarket and Manufacturing issues into a new direction.

Pricing is still too much guesswork for European companies, study proves

A European Pricing Platform (EPP) study shows that pricing is still a lot of guesswork for many European companies.  Most companies overestimate their pricing maturity level. That way, they lose a considerable revenue. 

The 2013 European Pricing Maturity study represents the opinions of 121 pricing executives from different companies and industries across Europe. They were surveyed by means of an online questionnaire (the Pricing Maturity Indicator). The questions are designed to indicate the level of pricing maturity of an organisation by evaluating the performance across the elements of the EPP Pricing Framework.

Most companies  are stuck on the first level of pricing: the price list maintenance. They'll sell any goods or services to any customer at any price. Some corporations have reached level two, transactional control. At this level, the right goods are sold to the right customers at the right prices. This is achieved by means of a number of successful margin optimisation projects. Rare are the enterprises that reach Full Value Capture (level 3). This involves greater segmentation of the customer base and seeing overall solutions at value-based prices. Here, the pricing process is fully integrated in the commercial organisation. An absolute minority of companies has reached level 4, Profit Optimisation. This includes rethinking the solutions and revenue model in order to capture more value for the customer and increase profitability for the company.

Pol Vanaerde, EPP president: "Pricing, one of the most important sales and profit drivers, spans multiple business areas and functions, including sales, marketing, finance and product management.  Unfortunately it is not always equally well integrated and managed. European companies would benefit from investing in developing their pricing maturity.  They will perform better in their markets, capture more value from their innovations and increase their profitability."

Pricing is still handled in an immature way by most companies. There is a big contrast in the different kinds of the industries. High Tech respondents have the highest actual pricing maturity. 43% already work on level 3. Machinery and equipment, the most represented industry in this study, have the most realistic perception of pricing maturity with the vast majority performing on level 2. The Fast Moving Consumer Goods and Retail on the other hand are working 100% on level 1. Their two biggest challenges lie in gaining control over discount practices and in making optimal use of the large amount of data gathered from customer transactions.

Pricing is a matter too serious to be handled by guesswork. It is too much regarded as a project rather than an embedded function in the commercial organisation. The power of pricing as a profit driver still seems to be underestimated. Therefore it is crucial for companies to invest in developing awareness of pricing across their organisation. Crossing the pricing chasm remains the biggest challenge for European companies and organisations.

Download the full report here.

For more information or to arrange an informal discussion on the issues raised in the EPP European Pricing Maturity study, please contact project manager, Nicolene Barnard : Nicolene.Barnard@pricingplatform.eu or Pol Vanaerde, president & founder of EPP pva@pricingplatform.eu.

Müller Martini Selects EPP Structural Partner Syncron Solution for Improved Service Parts Pricing

Stockholm and Zofingen, 17 October 2013 – Syncron International AB – Syncron, the supply chain and price optimization software company, confirmed today that Müller Martini has selected its Global Price Management solution to improve service parts pricing. Müller Martini aims to restructure its current parts pricing processes and capabilities as part of a strategic after-sales initiative.

The first phase of the project starts immediately at their Switzerland, Germany and the United States businesses, before a global rollout of the Syncron solution takes place to support over 30 company-owned sales and service locations worldwide.

Müller Martini searched for a solution partner that could implement best-practice pricing processes for its after-sales business, and importantly, could deliver a proven software solution that would enable them to operate a self-sufficient parts pricing process. Syncron was selected due the demonstrated results of its Global Price Management solution, their expertise in best-practice strategies for service parts pricing, and their ability to deliver on a global basis with a lower TCO. Other companies already running Syncron Global Price Management include Hitachi, Konecranes, Metso and Volvo.

“Parts pricing is a key feature in our strategy to become closer to the customer in after-sales and service, and being better placed to support their needs for aftermarket parts” commented Felix Stirnimann, Member of the Executive Board, Müller Martini Marketing AG.

“Few companies take full advantage of the opportunity that service parts pricing offers. Progressive companies like Müller Martini that implement sustainable price optimization solutions can achieve world-class after-sales and service businesses that delivers value to the company and its customers,” commented Christian Anders at Syncron. “We are delighted to work with Müller Martini and help them achieve their pricing objectives.”

About Syncron
Syncron is a global software company focused on supporting corporations in the manufacturing and distribution industries with leading edge, process centric applications to make significant improvements to customer experience and financial performance. Syncron’s ERP-independent software solutions for global inventory management, global price management, global order management and master data management are implemented faster and at lower cost than other solutions. Syncron has offices around the world. www.syncron.com 

About Müller Martini
Müller Martini is a global leader in developing, manufacturing and marketing print finishing systems and machines for variable size web-offset printing presses. Our objective is to meet our customers’ high demands by offering them innovative products and services in line with market requirements. Our extensive product and service offering ranges from variable-size web-offset printing presses, saddle stitchers, perfect binders, hardcover systems, and newspaper mailroom systems to state-of-the-art technology for manufacturing digitally printed products in saddle stitching, perfect binding or hardcover production. Müller Martini systems are developed and manufactured in ultramodern production facilities in Switzerland, Germany, China and the USA. www.mullermartini.com 

For more information, please contact:
Christian Anders, Sales Manager DACH, Syncron International AB
Tel: +49 89 99536770
E-mail: christian.anders@syncron.com 

# # #

Media Contact
Daniel Aston, Syncron UK
Tel: +44 (0)121 503 2650
E-Mail: daniel.aston@syncron.com

EPP is proud to announce Syncron as a New Structural Partner

BRUSSELS & DÜSSELDORF, September 23, 2013

The European Pricing Platform (EPP) is pleased to announce that they have added Syncron, a global supply chain management and price optimisation software company for manufacturing and distribution industries, as a new Technology Expert Partner, content provider, exhibitor and sponsor of upcoming EPP events throughout Europe. Syncron will offer EPP participants the opportunity to discover more about value-centric pricing strategies, and how they can prevent revenue leakage and optimise profitability.

Many European organisations have only just begun to realise how significant the effect of pricing on shareholder value creation really is. Until now, the focus was mainly on innovation, sales and marketing – and justly so. But in today’s economic environment, value capturing (effective pricing) is increasingly being discussed at the boardroom table as one of the main shareholder value drivers. According to Pol Vanaerde, President European Pricing Platform, “Deploying the right pricing strategy is essential to help drive business growth and improving profitability. Our aim is to support and promote pricing excellence so that it takes its rightful place as a strategic enabler for businesses. We are very pleased to welcome Syncron to our partner community. It is great to know that they share the same ambition to bring pricing maturity in Europe to a higher level. We will work close together to help organisations discover how to achieve sustainable value capturing which results in full profit optimisation.“

“Applying the right price is one of the most effective methods for manufacturing and distribution companies to optimise revenue and profitability” said Ulrika Olsson, Head of Marketing at Syncron. “Partnering with EPP puts us in a position to help educate and raise awareness of the latest pricing processes and strategies, and to better support those organisations that are looking proactively address their existing pricing practices”

As start of the collaboration, Pol Vanaerde will speak on The Economic Value Calculator at Syncron’s upcoming Pricing Seminar. The event, scheduled for October 17th, will present the very latest thinking and best practices on Unlocking the Secrets behind Value Based Pricing. Registration is free, so we hope to welcome and meet you all on October 17th 2013 at the Ardencote Manor Hotel Country Club & Spa in Warwick (close to Birmingham Airport) ! Please contact Lisa Corbett on lisa.corbett@syncron.com for more information.

About Syncron

Syncron is a global software company focused on supporting corporations in the manufacturing and distribution industries with leading edge, process centric applications to make significant improvements to customer experience and financial performance. Syncron’s ERP-independent software solutions for global inventory management, global order management, global price management and master data management are implemented faster and at lower cost than other solutions. Syncron clients are market-leading companies within the industries of aerospace and defense, automotive, consumer and industrial products, industrial equipment, and mining and construction equipment. Syncron has offices around the world. www.syncron.com 

About European Pricing Platform

The European Pricing Platform is a not-for-profit knowledge sharing platform focused on supporting business management, pricing and profit optimisation professionals and CxO-level executives with a main focus on Europe across a variety of industries. Our target is to keep the pricing and profit optimisation know-how of EPP participants up to date. Our mission is to be the number one on- and offline pricing resource for business decision makers. Interactive collecting, developing and sharing of pricing and profit optimisation knowledge are the key elements to the success of our platform. Enhance your pricing and profit optimisation know-how and be successful in it by joining this dynamic and resourceful pricing platform. www.pricingplatform.eu 

SOURCE: European Pricing Platform and Syncron

European Pricing Platform

Britt Dejager, +32/(0)473.717.669

britt.dejager@pricingplatform.eu

OR 

Syncron EU

Dan Aston, +44 (0)7917 764 623

daniel.aston@syncron.com 

How to drive a successful pricing initiative in the MedTech industry (part 3)

Practitioner Point of View:  5 things to do, to ensure success in your global pricing initiative, in just 100 days!

Marc Konieczny started his sales and marketing career in medical supply industry after his PhD (Natural Sciences) in 2000. Until 2003, he was product manager at Becton Dickinson (BD), Diagnostic Systems for Eastern Europe/Middle East/Africa (EMA). Until 2008 he took over increasing responsibilities in Marketing and Sales in EMA and Germany, Austria and Switzerland (DACH), respectively. In February 2008, he decided to leave BD for B.Braun Melsungen for development challenges in Marketing and Sales for Hospital Care (HC) division. Until 06/2013 he was Global Pricing Manager within HC Global Marketing and Sales. Today, he is leading the sales management team for Abbott Medical Optics (AMO) focussing on Cataract Business in Germany.



Marc has a number of successful pricing initiatives under his belt and will share his 5 rules to ensure success with the 32 attendees of tomorrow's Pricing Workshop in Düsseldorf (organised by EPP and the DACH Chapter Board).  You can read his 1st, 2nd and 3rd rules on the European Pricing Blog.  This blog post highlights the 4th and 5th rule to apply in order to see a positive effect in your profit after only 100 days!

RULE No. 4: Focus, focus, focus is the basis for success

Make sure that all people know which goals and projects are essential for the success of the company and which are "nice to have". Too many parallel projects and multi-tasking are often cited as a reason for inefficiency and for failure of change projects which were initially announced and received very "euphorically".

Start by focussing on a pilot project that will be accepted as a good showcase for others later on. Choosing a pilot country/division to initiate a project will not only gather experience in the respective country/division but also lead to a customised company-specific approach that can be used as a template for the later roll-out.  The right decision on the pilot country/division is crucial for further success.  The following checklist might help:

1. Does the country/division contribute significantly to the revenue share?
2. Is there a real need identified for a pricing improving initiative?
3. Does the management of the country/division realise that there is a need to work on the pricing?
4. Are there sufficient resources and capabilities available?
5. Is the management fully supporting this approach and will they actively promote the successful completion of the project in the future?

The pilot division's success significantly depends on the engagement of the local/divisional management in allocating the resources, providing the necessary leadership to the team and convincing the organization of the value of this project even though there is a high likelihood of extra-work and high pressure to succeed. For the management itself, it might be not only a lever to increase performance and profitability but also a great opportunity to position the pilot division's organisation as a model for the entire organisation.

Once the project is initiated, start with an analysis phase to identify the market/division-specific profit waterfall leakages.  This will help you to decide where to focus and shed light on where new concepts, e.g. a new pricing system, might be needed. Make sure that you always keep to the 80:20-rule : do not invest to much resources in "academic" analysis and details - only enough to show the people in a convincing and pragmatic way how to go forward successfully.

RULE No. 5: Create the mindset and momentum for the necessary change by allowing self-responsibility and freedom of action and establish the new measures in the daily routine

Take the time to understand the organisation and its strengths and weaknesses from the perspective of the employees, customers and partners. Name issues often, and openly, and create a real "sense of urgency" for the change.

Encourage the people to create own ideas, start own initiatives and to take personal risk. Don't be afraid to reform structures on the short-term if they prove to hinder the implementation of the strategy.  Show that you will do what is necessary to make the project a success.

Make sure that the project is not tailored to a single person or a small group of people, but create structures that support the change to be implemented on a broad basis.  Important is to win support in the organisation. A good way to achieve this is by bringing certain employees forward (into the spotlight) so that they serve as a "living example" for the new routine.

Dr. Marc Konieczny is a speaker at the 2nd Annual DACH Chapter Workshop to be held in Düsseldorf on Thursday, 19 September.  The language of this workshop is German.