Price and condition systems are a key instrument in the branded goods industry for managing growth and profitability. The national gross price list forms the starting point for agreements with retail organizations. Any deviation from this price should be linked to a specific and measurable performance by the retailer. In practice, however, things often look different.

Challenges in practice

In reality, many price discounts are not linked to any consideration. This leads to conflicts between trade and industry, as the industry can hardly react if the agreed services are not fulfilled. In addition, the industry cannot control the initiation of strategy-compliant measures by retailers or the intensification of marketing efforts.

Another problem is that many retail organizations include the price reduction in their calculations and use it to control the sales price. This means that the price reduction can often not be refused, even if the agreed service is not provided. This can lead to considerable financial losses for the industry and put a strain on the relationship between trade and industry.

The importance of transparency

A professional PKS is based on a high level of transparency regarding sales, turnover and contribution margin data. This transparency makes it possible to measure the effectiveness of discounts granted and the associated retail services. The continuous evaluation of this data enables ever finer control of measures and conditions.

Transparency is also important for building trust between trade and industry. If both sides have access to the same data and this data is transparent and comprehensible, misunderstandings and conflicts can be avoided. This can help to improve cooperation and build long-term partnerships.

Effectiveness of discounts and trade services

The effectiveness of discounts and trade benefits is a decisive factor for the success of a PKS. Discounts should not only be seen as simple price reductions, but as complex instruments that can boost sales, strengthen customer loyalty and increase brand value. A deep dive into discount strategies shows that they go far beyond simple price reductions and need to be carefully planned and analyzed to achieve maximum benefit.

Another important aspect is measuring the effectiveness of retail services. This can be done by analyzing sales data, customer feedback and other relevant metrics. By continuously monitoring and evaluating this data, companies can adapt and optimize their strategies to achieve the best possible results.

Support from Power BI

Power BI can play a decisive role in overcoming these challenges. With Power BI, companies can combine extensive data from different sources and analyze it in real time. This enables a high level of transparency over sales, turnover and contribution margin data. By visualizing this data, companies can better understand the effectiveness of discounts and trade performance and make informed decisions. In addition, Power BI can be used to create custom dashboards that allow retail organizations to continuously monitor performance and make adjustments in real time.

Another benefit of Power BI is the ability to perform complex data analysis and identify patterns and trends that might otherwise be overlooked. This can help companies refine their strategies and take targeted action to achieve their goals.

Top 3 challenges in the branded goods industry

1. Increasing price promotions by retailers: The proportion of promotional sales has risen from 25-30% to over 50% in recent years.
2. Price increases that are difficult to implement: Price increases are often unenforceable or are quickly eaten up by higher raw material and energy prices.
3. Eroding customer profitability: The additional demands of retailers are leaving manufacturers less and less room for concessions on conditions, which is leading to dwindling profits.

Conclusion

In summary, it can be said that a professional PKS is based on high transparency and the continuous evaluation of data. This makes it possible to fine-tune measures and conditions and thus maximize the benefits for manufacturers and retailers. A well-thought-out PKS can help to minimize conflicts between retail and industry and maximize the effectiveness of discounts and retail services.

Another important point is the continuous improvement and adaptation of the PKS. This requires regular review and analysis of data and a willingness to make changes and develop new strategies. By using tools such as Power BI, companies can make these processes more efficient and ensure that they are always up to date and achieve their goals.

Overall, it is clear that a professional PKS is an indispensable tool for the branded goods industry. It enables effective management of prices and conditions, promotes cooperation between retail and industry and helps to maximize growth and profitability. By using modern technologies and continuously improving strategies, companies can strengthen their competitiveness and ensure long-term success.