E30 | Pricing, Profit and Inflation with Hermann Simon

Hermann Simon, an expert in strategy, marketing, and pricing, is the Founder and Honorary Chairman of Simon-Kucher, the world’s leading price consultancy. A professor and prolific author with over 40 books, he is the only German in the “Thinkers50 Hall of Fame” and holds honorary doctorates from multiple universities worldwide.  Hermann stresses the importance of proactive pricing strategies. He suggests that businesses should adjust prices ahead of inflation rather than waiting too long, as delays can result in lost revenue. He discusses the concept of hidden champions, small- to mid-sized companies that lead in niche global markets. He explains how these companies achieve success through ambition, focus, and globalisation, and a long-term focus; a model he contrasts with the American preference for fast, extreme success.  Takeaways  Hidden champions succeed by leading niche markets with ambition, focus, and globalisation. Survival is key to success, as many hidden champions last over 100 years. Focusing on one product or service can help a company achieve world-class excellence, even in smaller markets. Globalisation allows these companies to expand beyond local boundaries. It’s important to build a sustainable, better business rather than just growing bigger. Many hidden champions are family-owned, and they rely on cash flow and equity for growth rather than seeking outside capital. Inspiring and managing people is crucial for success, particularly in service-based businesses. Simon-Kucher has a unique internal share market model that helps the company remain independent and ensures fair ownership transitions. Entrepreneurs must inspire their teams with their own vision and motivation to build a successful business.  Follow Hermann Simon http://www.hermannsimon.com/ https://www.linkedin.com/in/simonhermann/ https://twitter.com/hermannsimon https://www.facebook.com/hermann.simon.50 https://www.youtube.com/channel/UCZnVfMkFXvm2GLpy5VsVdtA  Hermann’s books Manage For Profit, Not For Market Share: A Guide to Greater Profits In Highly Contested Markets https://amzn.to/4dLa60s True Profit!: No Company Ever Went Broke Turning a Profit https://amzn.to/4dPG6k1 Beating Inflation: An Agile, Concrete and Effective Corporate Guide https://amzn.to/3A4F1qL Beat the Crisis: 33 Quick Solutions for Your Company https://amzn.to/4dLkqWz Hidden Champions of the Twenty-First Century: The Success Strategies of Unknown World Market Leaders https://amzn.to/4dMv5Af Confessions of the Pricing Man: How Price Affects Everything https://amzn.to/484PRcW Hidden Champions in the Chinese Century: Ascent and Transformation https://amzn.to/4f2M8yO Many Worlds, One Life: A Remarkable Journey from Farmhouse to the Global Stage by Hermann Simon https://amzn.to/3YsxBau Books on this episode Adventures of a Bystander by Peter Drucker https://amzn.to/4f63bQO  Watch the episode on YouTube: https://www.youtube.com/@TheEvolutionPartners  Newsletter – each week I share interesting insights, articles and ideas you can use. Join other leaders and subscribe to The Evolution Partners newsletter https://evolutionpartners.com.au/subscribe/  Books – Learn more about our books https://evolutionpartners.com.au/books/ Made to Thrive: The practical, prescriptive guide on how to be a great CEO Onboarded: How to bring new hires to the points where they are more effective faster. A business case for leaders on why you should commit to an effective onboarded process. Onboarded for Managers: Helping managers bring new hires to the point where they are more effective faster. Follow me: on https://au.linkedin.com/in/bradleygiles on https://twitter.com/Evolution_Perth Enjoying the show? Leave a review Support the show: https://www.facebook.com/evolutionpartnersperthSee omnystudio.com/listener for privacy information.