SUCCESS STORY

KÄRCHER Introduces Market-Based Parts Pricing

Kärcher Municipal has found a solution with MARKT-PILOT that enables a market-based pricing strategy. Through automated market price research, they can leverage price potential and make intelligent price adjustments.

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CHALLENGE

As more and more third-party suppliers appear on the market, customers can easily compare prices and delivery times for spare parts online. For machine manufacturers such as Kärcher Municipal, it is of central importance to be perceived as an attractive source of supply and, above all, as a fairly priced partner in the after sales sector - to remain resilient and to securely position the company for the future.

SOLUTION

MARKET INSIGHT ENABLES INTELLIGENT PARTS PRICING

Spare parts pricing at Kärcher Municipal was realized using a bottom-up strategy - prices were formed as a combination of the purchase price and several markup factors and then tested on the market. "With MARKT-PILOT, we are now turning the tables and establishing spare parts pricing in line with the market," says Jochen Schneider, Manager Spare Parts at Kärcher Municipal GmbH.

The cooperation with MARKT-PILOT provides Kärcher Municipal with an overview of the current position of purchased parts on the market and summarizes at a glance which parts are priced too high or too low. Kärcher Municipal can now actively exploit this price potential. The automated market price research of MARKT-PILOT's software PRICERADAR forms the grounds for market-based pricing and enables intelligent adjustments. This enables Kärcher to regain market share, and ultimately to increase satisfaction and loyalty.

RESULT

PROACTIVITY TRUMPS REACTIVITY: ROLLOUT OF THE MARKET-BASED PRICING STRATEGY

Currently, Jochen Schneider's team is working with MARKT-PILOT on an overarching market-based pricing strategy for Kärcher Municipal. "The total package is perfect: Both the communication and the customer-centric realization deliver. Moreover, the solution fulfills its promises and generates enormous added value for Kärcher," summarizes Jochen Schneider.

"There is enormous revenue potential in after sales service that helps machine manufacturers to remain resilient. However, without market insight and intelligence on price and delivery time changes in the market, companies are unlikely to remain competitive in the long run. The need for action and rethinking is urgent," warns Stefan Deuschle, Customer Success Executive at MARKT-PILOT. "We have made it our mission to enable machine manufacturers to act proactively in a volatile market and add tremendous value to the entire industry with our solution."

"MARKT-PILOT's software solution stands out, as does the dedicated team in the background. Market intelligence makes price potentials visible and as a result, we are not only increasing our revenue measurably and sustainably. What's more is that market-oriented pricing also has an enormous impact on customer satisfaction."

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As a specialized unit within the Kärcher group, Kärcher Municipal GmbH addresses municipalities and landscape gardening as well as service providers. In the company's base in Reutlingen, central functions such as administration, sales, product management, purchasing and development are located. Schwaikheim near Winnenden is home to the development of sweeping systems.

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