From Amazon and Digital Pricing: Interview with Frank Frohmann

Learn how machine manufacturers can profit from these business models and adapt these approaches to their strategy.

Amazon and Digitization - these two buzzwords belong together. But what about Machine Manufacturing and Amazon? Our interview with Frank Frohmann and Alex Morbe goes one step further and takes a closer look at the interaction between the two areas. Learn how Machine Manufacturers can profit from Amazon and Digital Pricing and adapt these approaches to their strategy.  

 Audio File: Interview with Frank Frohmann and Alex Morbe on Digital Pricing

Understanding the price-value ratio and integrating willingness to pay is crucial in pricing strategies. Pricing goes beyond value capture - it can also contribute to value generation. Pricing plays a significant role in the spare parts business for machine manufacturers. With thousands of parts to price, including commercial products in a competitive landscape, customers compare prices, lead times, and more. This perception of pricing impacts the brand, service offering, and new machine offerings. The high-level expectation goes beyond the decision to purchase, shaping the overall image. 

In the age of digitalization, new technologies have increased the amount of data available across various dimensions. Pricing has become more complex in the digital age, allowing even small companies to target new customers. The definition of a product has expanded to include software, digital services, and data. Industries like machinery face pricing challenges for software solutions and digital services, including the potential to sell data to third parties. These changes have a significant impact on pricing strategies. This is digital pricing.  

Amazon and digital pricing are challenges and chances at the same time – also for the machine manufacturing industry. The potential in pricing is significant, especially for manufacturers who heavily rely on pricing as a driver for their aftermarket business. However, our survey reveals that approximately 72% of commercial parts are currently underpriced due to a lack of competitive knowledge and reliance on internal costs. This presents a significant opportunity for improvement, as markets are constantly changing. By enabling and informing the team, and gaining management commitment, our seamless and automated pricing tool provides confident price recommendations based on data, relieving the workload and empowering decision-making for businesses of all sizes. 

More about this topic? You can hear the complete interview with Alex and Frank right now and dive deeper into digital and market-based pricing.  

 Audio File: Interview with Frank Frohmann and Alex Morbe on Digital Pricing

Frank Frohmann is in the field of pricing since three decades. He started at Simon Kucher & Partners in 1996, worked at Lufthansa, B2C and B2B Bosch Inhouse Consulting, where he was for five years and consulted the business units in the field of pricing, new products and development and also strategic projects.  

As Sales Director, Alex Morbe was one of the first employees at MARKT-PILOT and has served as Managing Director together with Tobias Rieker since January 2023. With over 15 years of experience in management positions in the after sales of mechanical engineering companies, he is responsible for the strategic direction of the company. 

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