Increasing profit with the right price management

Particularly in mass markets and commodity markets, margins are decreasing. The perceived strong price pressure makes companies almost only orientate themselves at the prices of their competitors. They also stick to outdated cost-plus-methods instead of aligning their prices at market potentials and profit optimisation. Often, the company strategy is unclear: Is it all about increasing margins or about defending sales and market shares?

Companies often do not know the profit potentials of customers, applications and products and consequently do not fully make use of them. A systematic price management finds only rarely its way into today's practice. Instead many companies create complex price management and conditions systems, allowing little transparency in terms of profit per customer, application and product.  

Professional pricing consulting is fast, intensive and integrated

Pricing projects with J&M are characterised by high pace and convincing results. Within only ten weeks a project can be completed including implementation, training and coaching "on the project". We carry out projects with a high success oriented share of up to 50 percent. International experienced change agents ensure that changes are supported by all parties involved. On request J&M accompanies the implementation of the new pricing concept up to the negotiation with the customer. Our pricing consulting portfolio includes amongst others:

  • Development of  profit-optimised price strategies
  • Design of an integrated lifecycle price management
  • Analysis of price competition
  • Operational optimisation of pricing for the whole product and service portfolio
  • Definition of customer and market segmentation for differentiation with the help of an integrated pricing and SCM strategy
  • Analysis and implementation of profit optimal products, services, packages and solutions
  • Development of strategies for price communication
  • Design of approaches for profit optimised inventory and capacity pricing
  • Benchmarking and performance-oriented pricing and conditions systems
  • Analysis, optimisation and harmonisation of price controlling, including definition of KPIs and design & implementation of pricing dashboards
  • Concept of price negotiation tools and argumentation guidelines for sales employees

Measurable results speak for themselves  

With integrated pricing solutions numerous J&M clients could improve their revenue and EBIT. Price setting is carried out faster and more systematically today, thus the clients achieve a higher price quality and consistency. In addition, better price communication provides higher customer satisfaction. Pricing optimisations allow the following measurable results:

  • EBIT improvement of up to 2.5-% within only three months
  • Sales increase by 10-% through an revised price strategy
  • Decrease of share of unprofitable customers by 10-%
  • Reduction of preparation time for price negotiations by 50-% on average
  • Reduction of preliminary lead time for price list adaptations by 70-%
  • Achieved price increases by up to 10-%
  • Discount and bonus decreases by up to 30-%
"The approach from J&M was to listen and encourage us to take our own decisions and decide our own targets. They were not imposing or pushing "unreachable" targets, as many other consulting firms that I have come across. The overall best thing about the project was the fact that it gave us all the opportunity to look at our own activity with totally new eyes and allowing us to spend time on issues that may not be prioritized due to the hassle of the day-to-day business."

Taina Ekström, Marketing Director Sweden

Saint-Gobain Isover

"The good results of our pricing and sales project with J&M have been fully accepted. J&M had really innovative and pragmatic suggestions, tools and solutions that will help to improve our processes. Thanks to the J&M team's experience with international and change projects the project could be conducted within two and a half months."

Dr. Ulrich Hüllmann, CEO

GEA Farm Technologies GmbH