The Value of Things. a New Generation Of
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OTTO 5th THE VALUE OF THINGS. On costs, prices and value. A NEW GENERATION OF FAÇADE TECHNOLOGY. UNIGLAS and OTTO jointly marketing timber-glass composite systems. THE HORROR LURKING IN THE BATHROOM. OTTO launches mould information website. Contents This 5th international edition of OTTOprofil presents a selection of articles from the German OTTOprofil editions 15 – 17. Page Old values, new opportunities. 04 The value of things. On costs, prices and value. 10 OTTO-NEWS. 4 On technology, projects and raw products. 12 The best connections virtually. Customer orientation through new media. 16 A new generation of façade technology. UNIGLAS and OTTO jointly marketing timber-glass composite systems. 22 OTTO life style. 16 Design with OTTO. 24 OTTO and art. Silicone. Art. Bodies. 26 OTTO History. A recipe for success from the cartridge. 38 32 OTTO Partner. UNIGLAS - Together they are strong. 34 OTTO-NEWS. On technology, projects and raw products. 38 The horror lurking in the bathroom. 42 OTTO launches mould information website. 40 OTTO-Trend. Glass from a sporting perspective. 42 Appearances can be deceptive. here is no formula for success. But there are many ingredients. For OTTO and its Why colours sometimes look different. customers, traditional values such as reliability, precision, long-term thinking and 46 The old lady's letter. action or customer service are just as much a part of putting new ideas into practice 50 On customer loyalty and product quality. T as optimism, creativity and courage. In this international edition of OTTOprofil, you will find 50 OTTO city tours - Paris. a wealth of stories and philosophical views about how OTTO overcomes challenges and A dream city on the Seine. shapes its success together with its customers and partners. We at OTTO’s have been doing this for many decades, day after day. In Germany and Europe. In the virtual world of the Internet as well as on construction sites and in factories. And last but not least: on a LEGAL NOTES Publisher: Hermann Otto GmbH, 83413 Fridolfing, GERMANY, Tel.: 0049-8684-908-0, [email protected], www.otto-chemie.com personal level. The OTTOprofil editorial team hopes you enjoy reading! Editorial team: Dr Volker Weidmann, Gisela Bechmann, Günther Weinbacher, Frank Bechmann, Sebastian Terner Conception, editorial, design: WMW Werbeagentur, Ainring Translations: Wieners & Wieners, Ahrensburg, GERMANY Images: depositphotos/Pazham, depositphotos/Szefei, plainpicture/Cultura, Smirro GmbH, Dirk Lindner Photo, Oliger, Petschenig, Ktec, 0204 Profil Uniglas GmbH & Co KG, SUPERLAB - Design Solutions / Dold und Hasenauer OG, Fenster Gegg GmbH, Stiassny Glas&Co, Consolar, Soland, Tzuri Gueta, Profil 03 Real Mabre, Villa Melnik, Systembau Horst Babinsky Printing: F&W Mediencenter, Kienberg, GERMANY Item number: 9999874 ON COSTS, PRICES AND VALUE. THE VALUE OF THINGS ON THE VALUE COVER STORY: OF THINGS One famous scene in the cult film Life of Brian by the British comedy group Monty Python is set in a bazaar. The lead character is in a hurry to buy a beard so he can disguise himself whilst running away. When he just wants to pay the stated price, he is confronted with incomprehension on part of the seller, who then forces him into a long price negotiation. This is not so much about the price itself, but about the social process of traditional oriental haggling. A This scene makes it clear: pricing is a complex issue. This is primarily because two people with differing ideas comical yet insightful lesson about of the meaning of the world value and having conflicting goals (each of them wants to maximise their profits) price and value for every seller and always have to reach an agreement. Different cultural norms are also added to the mix. Whilst joint price buyer. negotiation is normal in certain societies and sectors of the economy, at the supermarket checkout you’re certain to be met with indignation. And not just from the customers waiting in the queue behind you. D 04 Profil Profil 05 € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ ¥ ¥ £ Two terms for one The benefits from the Invisible benefits beyond £ The common law of business phenomenon? customer’s perspective. the product. $ Price and value are generally considered to be Thomas Stein has been dealing with the issue It does not mean that only the product is at $ balance prohibits paying a little and two different things. An example: the Silberadler of price for a good 40 years. In the role of an fault, it can also be its availability for example. € [silver eagle], a 5 DM piece containing seven active seller and a sales trainer, he himself has A small example: The eruption of the € getting a lot: if you deal with the grams of fine silver, was minted in Germany been confronted many thousands of times Eyjafjallajökull volcano also had consequences ¥ from 1951 to 1974. The German Central Bank with the question of what the key aspect of reaching far beyond Iceland itself. In particular, ¥ lowest bidder, it is well to add will now indefinitely exchange this former price is in price management and pricing air traffic was grounded in large parts of north- official currency for 2.56 euros, the DM-EUR policy. His answer is always: ‘it is the value’ or, ern and central Europe in mid-April 2010 £ rate. The silver value alone is around 3.20 to be more precise, ‘the value perceived by due to the clouds of volcanic ash. The £ something for the risk you run, and euros, however. The 5 euro note, in contrast, the customer, i.e. the benefit to the customer’. consequence was a hitherto unheard-of $ has a pure material value of less than 10 euro The customer’s willingness to pay a price – curtailing of Europe’s air transport system. If, $ if you do that you will have enough cents. ‘Today’s money is no longer backed by and thus the price gainable by the seller – for example, a company had recently sourced any kind of tangible assets. Bank notes are therefore always depends on what value or and scheduled cheap moulded rubber parts € € to pay for something better.” printed paper.’ This sentence was uttered by benefit a product or service is perceived to from the Far East, they were out of both luck none other than the President of the German have by the customer. By giving the same and resources. This was likely to be more ¥ OF THINGS THE VALUE COVER STORY: Central Bank in 2012. And yet we pay for name to both sides of the transaction, the expensive than the cost of using locally ¥ everything with these cotton notes and get Romans demonstrated that they understood produced parts. And so the question has to £ John Ruskin (1819 -1900) paid with them, too. The reason is simple: this fundamental connection. This understanding be asked: does everything that makes our £ their value is not based solely on the material, of the identity of value and price, as well as of global economy cheaper on paper also but on what is termed their fungibility. We can supply and demand, is a viable theoretical actually lead to savings? Is it sufficient to only $ in fact quite easily exchange the note for basis for comprehending and solving pricing compare the technical properties and the price $ goods and services at any time. The difference problems. Everywhere you go, the general of two products, or are there other factors € of € 4.90 between material value and price complaint seems to be that it’s all about relevant to value determination that are not € therefore exists in the trust we place in the money. The cheapest offer is favoured. directly connected to the product? euro as the official currency in 18 states. Discerning providers have no chance any ¥ more. Stein considers this attitude to be ¥ largely misguided. If someone complains to Let’s talk about customer ALTERNATIVE PRICE POSITIONING STRATEGIES £ The Romans: bearing witness him about overly competitive pricing, then he service instead. £ to ancient market mechanisms. asks what that person has to offer over and $ above the ‘norm’ compared to the cheaper Thomas Stein is firmly convinced that both $ For the enterprise consultant Thomas Stein, competition – i.e. what value and benefits that end customers and businesses are prepared high based in Mannheim, Germany, whose areas the customer can actually grasp. This then to pay premium prices if they receive more, € of expertise include sales strategy and regularly leads to the conversation turning to transparent value in return. Plausibly € negotiation tactics, value and price are simply the product and its features. communicating these values, which are ¥ two sides of the same coin. He refers in part often not apparent at first glance, is a real ¥ to the Latin word origin. ‘Pretium’ actually challenge for every seller. means both ‘price’ and ‘value’. A transaction £ in fact only comes about when both seller and £ medium buyer agree a price. This means the price D $ reflects the value of a product that buyer and $ seller finally settle upon, not the price offer the € seller makes to the buyer. € Relative performance/quality ¥ low ¥ low medium high £ Th. Stein | IMTS Mannheim £ Relative price $06 Profil Profil 07$ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ € ¥ £ $ ¥ ¥ £ Successfully raising prices Selling valuable products more Selling value or hustling? If you take part in price wars £ through more value. easily. you will lose – always! ‘Nowadays people know $ $ A good example for adding value to premium In order to successfully sell comparably high- the price of everything Be honest, who among us hasn’t been a Let us assume you are making € 5 million in prices is Miele. Miele can demand 15 - 20% er quality products, you have to address the bargain hunter now and again? As supposed turnover and your profit margin is 5%.