Studies and White Papers

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Increase topline growth in the off-highway vehicle industry by optimizing spare parts prices

China’s economy has been facing severe headwind in the last few years. The GDP growth rate in Q3 2015 dropped below seven percent for the first time since 2009. Slower economic growth is becoming the new normal. Because the off-highway-vehicle industry highly depends on economic development, it is facing mounting challenges in terms of topline growth. Take construction equipment for example, the sales in 2014 dropped about 20 percent compared to 2012. Overcapacities in production inherited from periods of fast growth, coupled with sluggish domestic demand, are causing original equipment manufacturers (OEMs) of off-highway-vehicles many problems.

Publishing SaaS Prices

Afraid to show prices? Publishing SaaS prices can deliver significant upside – if done the right way.

The luxury of pricing

How sophisticated pricing for your luxury products can help you tap unexplored profit potential
A sophisticated approach to pricing luxury products can seem like a luxury in itself, and given the already high margins in luxury markets, it may be something you deem unnecessary. But higher prices translate into higher profits, so why not explore  this opportunity?

Our research shows that just a 2% price increase can raise EBIT by 9% to 25%, depending on the product category. But before you increase prices, you need to answer some key questions. Which products’ prices should be changed? What is the optimal price? How do you ensure that you don’t hurt demand? This article reveals the common trademarks of successful sophisticated pricing.

The “Value before Volume” pricing strategy: So easy and yet so hard

Dr. Axel Heitmann, former CEO of Lanxess AG, speaks at length about his experiences

Dr. Axel Heitmann, the former CEO of Lanxess AG, famously made “Value before Volume” the central tenet of his company’s pricing strategy. The idea became a driving force when BAYER AG divested its commodity chemicals business in 2004 and Heitmann took control of the new company, called Lanxess. Within eight years, he pulled off what analysts referred to as “mission impossible”: he created a DAX company, increased revenue by a third, doubled the operating margin, and quadrupled the share price. Dr. Karl-Heinz Sebastian and Dr. Andrea Maessen were eager to speak to Dr. Heitmann, who was named Entrepreneur of the Year in 2006 and continues to advocate of the “Value before Volume” strategy. The two partners from Simon-Kucher met with him in Hamburg to learn the strategy’s true essence, understand the internal and external resistance it faces, and looking back, what Dr. Heitmann would do differently. Download file here

Software Insights: Navigating the SaaS transition

Transitioning to Saas is an effective strategy from a long term perspective, but it is a complex process. Our experts reveal the drivers of successful perpetual-to-SaaS transitions by drawing on multiple case studies of companies that have "made it to the other side".