Value extraction (1985-2005): The era of global pricing experts
When you hear “Global Pricing Experts,” one name comes to mind: Simon-Kucher. It’s a reputation we’ve earned through decades of pioneering work, stretching back to our very first days as a firm. Helping companies truly understand the value they bring to the market, and ensuring they capture their fair share of that value, has been at the heart of our mission since day one.
Back in this era, we were doing groundbreaking work. We brought academic rigor into the business world, introducing and applying concepts like the Van Westendorp and Gabor-Granger price tests. But we didn’t stop there – we pushed boundaries to new heights with advanced conjoint analysis, even when that meant using primitive tools by today’s standards: Early CPU software and yes, paper mailings!
These were the days when “data collection” sometimes meant waiting weeks for stacks of surveys to come back by post.
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Did You Know? Simon-Kucher was founded in 1985 by Hermann Simon, Eckhard Kucher, and Karl-Heinz Sebastian in Bonn, Germany. The firm began as a small academic consulting venture, inspired by a shared passion for applying rigorous, data-driven approaches to solve real-world business problems. Learn more about our legacy here.
This was an age of discovery, all about diving deep into the concept of willingness to pay. We worked at a granular level to identify how customers perceived value and helped companies realign their pricing strategies, whether it was setting the right price point or restructuring the entire pricing model. The goal was always the same: To achieve a better balance in how value was shared between buyers and sellers.
Even as technologies and industries have evolved, this work remains timeless. Today, companies across the globe continue to grapple with pricing, often underestimating the importance of a systematic approach to understanding their value. Pricing continues to be the strongest profit lever, with well-executed strategies ensuring direct margin impact faster than increasing volume will. Yet more often than not, companies underprice their products, leaving potential value on the table.
This era wasn’t just the foundation of Simon-Kucher’s story; it was the foundation of modern pricing strategy. The lessons learned and methods developed during these years still guide businesses today, proving that understanding value is more than a phase, it’s a mindset.
Simon-Kucher is the world’s leading pricing consultancy."
- The Economist, 2005
Accelerated efficiency (2005–today): Redefining growth
The 2008 Global Financial Crisis reshaped industries, forcing companies—especially in the industrial sector—to rethink their business models. Cost-cutting was no longer enough; firms had to optimize pricing, streamline operations, and find new ways to create value amidst economic volatility. Those that adapted emerged stronger, with a sharper focus on profitable growth rather than growth at all costs.
Then came another major shock: COVID-19. The pandemic, combined with rising geopolitical tensions, exposed vulnerabilities in global supply chains. Governments, recognizing the risks of over-reliance on foreign production, turned toward protectionist policies, investing in domestic industries such as semiconductor manufacturing and implementing tariffs to safeguard national interests. In this rapidly shifting landscape, businesses need agility and resilience, not just efficiency.
Every 20 years, a new challenge reshapes the global economy. And each time, Simon-Kucher helps companies not just survive—but monetize and thrive.
Did you know? Our B2B Commercial Trends Study 2023 revealed that around 50% of companies lacked plans to counter economic downturns, underscoring the importance of proactive strategies in volatile markets.
Source: Understanding the growth opportunity presented by volatile times
From productivity to purpose.
Industrial firms have long faced pressure to do more with less, but the challenges of the past two decades have redefined what that means. Rising raw material costs, increasing global competition, and the urgency of sustainability have forced companies to look inward, scrutinizing their operations to find efficiencies without sacrificing quality or innovation.
At Simon-Kucher, we’ve been helping our clients reimagine what efficiency looks like. This work has ranged from streamlining pricing and sales processes to developing comprehensive strategies that optimize supply chains and improve cost structures. Whether it’s introducing leaner pricing models, aligning incentives across teams, or finding ways to reduce waste, our focus has been on creating systems that support long-term growth.
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Sustainability as a driver of efficiency
Efficiency optimization in today’s world is inseparable from sustainability. Companies are increasingly focused on reducing their carbon footprints and aligning with ESG goals while maintaining profitability. Simon-Kucher has been at the forefront of this shift, helping industrials firms integrate sustainable practices into their operations without compromising on growth. From redesigning product portfolios to exploring new business models like circular economies, we’ve shown that efficiency and sustainability can go hand in hand.
"The fatal disconnect that is killing sustainability doesn’t exist between what customers say and what they do. It exists between how companies view consumers and how consumers view themselves. We refer to this disconnect as the green mirage."
Read The Demand Revolution to discover how businesses today can balance the dual pressures of meeting customer needs and regulatory demands while pursuing sustainability.
Did you know?
of European industrials companies aim to reach net-zero by 2030,compared to 59% in North America
of industrial companies struggle to monetize their sustainability initiatives
Harnessing the power of Generative AI
One of the most exciting advancements of this era has been the rise of GenAI, unlocking new levels of efficiency by automating processes, improving decision-making, and driving innovation. We’ve helped companies use AI to refine demand forecasting, optimize production schedules, and personalize customer experiences at scale. GenAI also plays a role in revolutionizing pricing, allowing for real-time adjustments based on market trends and customer behavior. By leveraging these tools, our clients have been able to achieve not just incremental improvements but step-change efficiencies that push their growth, innovate their commercial strategies, and redefine their operations.
Did you know? Our B2B Sales Survey revealed that 44% of top-performing wholesalers using AI for customer lifetime value prediction and lead qualification, significantly boosting sales efficiency and streamlining customer acquisition. 30% of top manufacturers leverage AI for dynamic pricing and customer lifetime value (CLTV) prediction, improving alignment with customer needs and boosting sales effectiveness.
Source: B2B sales study
Efficiency as the foundation of Better Growth
Today, efficiency optimization is a mindset that underpins everything we do. It’s about using every resource wisely, whether that’s time, money, or technology. At Simon-Kucher, we create systems that don’t just work harder but work smarter, enabling companies to grow in a way that’s both sustainable and scalable.
