Higher Profits Through Improved Pricing Processes in the Automotive Industry
Markus B. HoferAutomotive Competence Center, Simon-Kucher & Partners Strategy and Marketing Consultants, Germany
Bernhard EbelAutomotive Competence Center, Simon-Kucher & Partners Strategy and Marketing Consultants, Germany
INTRODUCTION
Improving profitability and shareholder value are the primary targets of top managers in the automotive industry. While past efforts have focused mainly on cost reductions, pricing and pricing processes have sometimes been neglected. Prices and pricing, however, are essential profit drivers and at least as important as cost cutting. There are three main advantages of improving pricing processes versus cutting costs (see...