This PPT slide, part of the 133-slide Pricing Strategy Workshop PowerPoint presentation, titled "Managing Price When OEMs Appear to Have the Leverage" outlines several challenges faced by Original Equipment Manufacturers (OEMs) in pricing strategies and offers corresponding tactics to address these issues.
The first challenge highlights the difficulty in differentiating offerings. It suggests identifying unique product characteristics and emphasizing attributes and service features over price. This approach aims to create a clearer value proposition for customers, which is critical in a crowded market.
Once differentiation is established, the second challenge emerges: effectively communicating this value to customers. The slide advises training the sales force to articulate the product's value effectively. This step is crucial, as even the best offerings can fail if the sales team cannot convey their benefits convincingly.
The third challenge relates to the prevalence of auctions, which often reduce products to their lowest common denominator. The recommended tactic is to differentiate the product before it enters the auction process, ensuring that it stands out and maintains its perceived value.
The fourth challenge addresses buyers with significant purchasing power who may seek to commoditize all supplier products. The slide suggests that products unable to differentiate will inevitably compete on price alone. Thus, understanding what sets a product apart becomes essential.
Lastly, the fifth challenge emphasizes the importance of recognizing factors like delivery and quality that can influence customer decisions. The recommendation is to clearly understand these differentiators to maintain a competitive edge.
Overall, the slide serves as a practical guide for OEMs navigating complex pricing dynamics while emphasizing the importance of differentiation and effective communication.
This slide is part of the Pricing Strategy Workshop PowerPoint presentation.
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Pricing Strategy Workshops Value Proposition Sales Force Effective Communication Sales
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