Building Materials & Technology
Simon-Kucher helps building materials and technology companies dramatically improve pricing and revenue. We have helped them sustainably increase profits an average 100-300 basis points. We have also helped companies in other construction industry sectors (including manufacturers, wholesalers, general contractors, and facility and installation services) achieve similar gains.
We are experts in optimizing price and sales for direct and multi-level distribution systems. We customize solutions to meet our clients’ needs, from global transformation programs to regional, specialized solutions for niche markets. To arrive on our recommendations, we methodically gather and analyze data, market information, expert assessments and best practices.
Through years of working closely with our clients, we thoroughly understand their dynamic market environments, competitive pressures and current market developments. We have developed intelligent and pioneering solutions to help clients address their biggest challenges:
- Increasing international competitive pressure and rising price transparency
- Margin deterioration and over-capacities from focusing on volume instead of value
- Capturing value from innovations – e.g., "smart homes" and "green buildings"
- Managing the seismic shift to online business
Customer ownership – brand value and customer loyalty management
Building Manufacturers & Wholesalers
For three decades, Simon-Kucher has helped building manufacturers, wholesalers and service providers optimize price and improve sales to achieve sustainable profit improvements of an average 100-300 basis points.
In determining strategy, optimizing price setting and steering sales, we help manufacturers to position their products and services throughout the value chain. By helping them deeply understand customers, processors, decision makers and sales partners, we ensure that our clients grow profitably and increase value to their customers and shareholders.
Our projects for building manufacturers include:
- Improving pricing, sales processes and organization
- Developing market and channel strategies
- Crafting product portfolio and multi-brand strategies
- Establishing value-oriented price list architectures and new-product positioning
- Creating performance-oriented price and conditions system in direct and indirect sales
- Determining service pricing and price defense
- Guiding sales forces on how to sell more effectively
- Designing customer loyalty programs for installers/partner programs for wholesalers
We also help wholesalers profitably manage complex product and customer portfolios. Our projects for wholesalers include:
- Developing and managing gross price systems independently of manufacturers
- Calculating profit-optimizing markup/price lists
- Creating highly effective customer segmentation schemes
- Establishing competitive pricing in OTC and project business
- Setting service prices for value argumentation and charging value
- Designing effective pricing processes and systems to guide sales campaigns
Service providers rely on us to boost profits even when price and performance competition increases. Our projects for service providers include:
- Optimizing price lists and service bundles
- Introducing new price metrics based on value instead of work input
- Profitably structuring and negotiating framework contracts
- Introducing and optimizing surcharges for special services
- Determining strategic offers and pricing in tenders