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Price valuer

Georg Tacke, CEO of Simon-Kucher & Partners, tells of a career spent looking at how a company's pricing can affect its success.

"Very often companies forget the value, and what they do is, as we call it, cost-plus pricing. Because they know the cost, and the plus means they add a margin, and in general very often these prices are too low because they don't capture the value. They just capture the cost." - Georg Tacke.

"What is the impact of Internet? It is high price transparency... (which) leads to high price sensitivity. So the customer tries to go and get the best deal... In recent years, on the Internet, very often the low price offeror won the game." - Georg Tacke.

GEORG Tacke cannot help but notice prices wherever he is, and it annoys him when he sees a bad one.

"It's all the time," he says.

"If you see price tags? If I see somebody who makes a price of $4.37, I think, 'What an idiot'. I mean, why $4.37? I'm 100 per cent sure that whether it...

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