8
9% EBIT increase with new spare p
at an international automotive sup
AT A GLANCE
SPARE PARTS OPTIMIZATION FOR AUTOMOTIVE SUPPL
INITIAL SITUATION
• International automotive
supplier with cost-plus
approach
• Dealers and customers
complain about distorted
prices (e.g., right back mirror
more expensive than left one)
• Lack of central price steering
lead to grey imports
RESULTS
Value-based
pricing plus
OBJECTIVE
• Have consistent parts pricing
• Reduce dealer/customer
complaints
• Increase profitability
METHODOLOGY
• Optimization of segmentation
• Introduction of price drivers
and thresholds per segment
• Transformation of pricing
model from simple cost-plus
to value-based pricing plus
approach
Simple
cost-plus pricing
Differentiated
cost-plus pricing
PRICING MODE
TRANSFORMATION JOURNE
Source: goetzpartners