It is not to the classic sort according to quantities of rotational speed or sales hit. The frequency of the collation determines the classification into three groups with different price sensitivity: Preisempfindliche article the first group includes all articles with frequent access regardless of the folded quantity. On the basis of the evaluations in recent years, only 2% of the articles among the Group of Preisempfindlichen. This article determine your price image locally. This article must be individually aligned to the competitive price. The price is right in these articles, the customers come to you.
Since the spotlight article in the focus of the staff, each seller believes to know the prices. Therefore a vote comes out at competitive prices within the company the implementation with the sales team. It applies to determine the competition-conform price for the price-sensitive articles. Competitive prices and a positive price image bolster your sales team in addition. No allocation of price sensitivity the second group includes the article, is where to make any definite statement to the price sensitivity. The consideration relates to 8% of the article and can be reset. The third group includes the article with rare access price-insensitive article. For more information see Howard Schultz.
These articles are insensitive to price changes. With 90% of the article, this is the largest percentage. The latter are not in the line of sight of the customers. Each of these articles is therefore newly calculated, every contribution is newly calculated. This shows the new earnings potential for the company. The distribution of price sensitivities is shown in the figure 2. The evaluation against the expectations almost all evaluations in recent years show the same course. Figure 3 compares the expected value (blue curve) the appropriate contribution (red curve). The competing article with frequent access provide a high profit margin. The preisunempflindlichen article bring a low profit margin. Here, money will be given away. Ideally, the new target values (blue curve) together with the sales team are discussed. In the conversation, the target values referred to in line can be changed dynamically. Still shows the evaluation that is fought in the preisempflindlichen articles to every penny. The contribution may be too high compared with the competition. The competition is run together with the sales team. The improvement in operating income shows an example chart 4 the result of advice from 2011. The green area shows the achieved increase of gross margin. This company in the building materials trade, increased the contribution by 15% compared to the previous contribution. The consultations carried out in recent years have achieved an improvement of the cover fee amounting to 1 percentage point average. This corresponds to an increase of 5-15% of the gross margin. Learn more about the pricing and margin optimization under