Optimal pricing, efficient sales, and excellent service – these are the key components for success in the machinery and mechanical engineering industry. With extensive experience and proven, innovative strategies on these topics, Simon-Kucher advises a number of industry leaders on increasing their profitability. Whether you are currently facing challenges or expect to face some in the future, we ask the right questions, deliver the suitable solutions, and help you implement them in your business.
Differentiated market approaches
In the past, international machinery and mechanical engineering companies often focused on leading markets where requirements are typically demanding. Now, these companies are setting their sights on new segments with high untapped growth (e.g. medium-sized markets). To ensure you are able to make the most of this opportunity, we will advise you on comprehensive marketing approaches, from new product portfolios to pricing to sales.
“What do my customers want?” Many midsized mechanical engineering companies, particularly those in emerging markets, are currently unable to answer this question. We can help you bring your customers’ needs into focus. Our goal is to create an optimized product portfolio with modern machinery, innovative technology, and the right product bundles in alignment with local requirements and guidelines.
We not only take care of your core business but also growth areas like services and spare parts. Let’s work together to unlock your full potential. For example, we can help you optimize your service portfolio, improve the pricing of spare parts and service contracts, and design sales promotions.
Digital added value
Digitalization is not only finding its way into consumers’ everyday lives, it is also becoming a key stream of revenue and profits for machinery and mechanical engineering companies. What is the problem? Until now, customers have often received software or value-added services free of charge. To sell digital added value in the future, companies will need to develop new digital portfolios and market them properly. Software developers are an excellent example and their pricing models and metrics are now being applied in the mechanical engineering industry (e.g. recurring payments).
Cost-plus pricing is on its way out. In order to maximize profits, mechanical engineering companies need innovative pricing models. For example, if you are a provider of new systems, we can help you ensure your value-based list prices and discount systems meet the growing requirements of today’s global market. An important component for this is better price control based on structured measuring of price quality. In after sales, we can help you optimize pricing, design suitable offerings, establish active selling for your spare parts, and define hourly rates and service contracts.
What does your current sales approach look like? Does it target growth regions and segments? Which organizational structures and processes does your sales team need in order to grow successfully and perform effectively in the market? Together, we can develop a strategy to manage your sales resources as efficiently as possible and allocate them to new and existing customers in a targeted way to achieve maximum profit. Thanks to our extensive project experience, we understand the potential of digital technologies and know how they can impact your sales approach. We will also show you how to use customer and usage data from digital products to enhance sales activities.
At a glance
We support mechanical engineering companies by:
- Increasing profit by between 200 and 400 basis points through Power Pricing programs
- Introducing and pricing new products
- Developing strategies for secondary products in emerging markets
- Improving price positioning for new and existing products
- Encouraging the use of new digital business models (e.g. industry 4.0)
- Optimizing after-sales activities (e.g. strategies, portfolios, pricing for spare parts and services)
- Developing growth strategies
- Boosting sales performance through sales excellence programs
- Improving key account management
June 15, 2017
August 22, 2017
Global Head of Chemicals and ConstructionParis, France
PartnerAmsterdam, The Netherlands
Managing Partner SwedenStockholm, Sweden
Managing Partner Latin AmericaSantiago de Chile, Chile
Partner and Board MemberAtlanta, USA
Managing Partner USANew York, USA