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It is very difficult to be sure that any pricing information that you get is correct. There are various levels - retail, dealer net, OEM etc.- which vary widely. In addition, the level of finish- particularly on assemblies like engines and transmissions- can have a significant impact.
Market pricing information is important. It enables a producer to judge the level of profitability on a new product before committing to production while a consumer can understand his competitors input costs and therefore margin.
Through the years Power Systems Research has developed and proven a methodology that allows us to produce data that presents a picture of the industry pricing. This is accomplished by using:
- Industry knowledge and contacts
- Understanding of the pricing and discount structures within the Industry
- Specific surveys within the target sector to obtain actual pricing levels
- Comparison of multiple data points & sources to ensure pricing is representative
Example:
- A Client required the competitive market price of selected off-highway transmissions to large original equipment manufacturers.
- We obtained between 5 and 10 independent prices for each transmission.
- These were normalized for differences in accessories and differences in channel through which the prices were obtained.
- The resultant normalized prices were averaged to produce a market price that a large volume original equipment manufacturer might expect to pay.
Contact us if you would like to know more about our work in the area of competitive pricing.
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