We help companies maximize their profits by finding the optimal pricing levels and studying the volume impacts from a product and portfolio perspective. By shifting from a cost-perspective to a value-perspective on pricing, we help you uncover hidden potential profits.
Instead of setting prices for customers and consumers according to a cost-plus pricing model, prices should be set based on the price you are able to command for your products and services. Often it is seen that cost-plus pricing simply leads to gradual incremental price increases which thus follow an overly deadlocked structure. The result is that you miss out on the potential added-value that can be uncovered if you follow a value-pricing approach. Value Pricing uncovers and quantifies the value customers and consumers experience so that you can set your prices accordingly and potentially increase profits.
Many companies have complex product portfolios, where an internal logic is sought while ensuring competitiveness in the marketplace. However, pricing a product portfolio is not just about setting prices on individual products in your portfolio. It is about understanding relative pricing levels and pricing dynamics, and using that to create a strong portfolio. By using the psychological aspects of pricing to design your offering and set the right price levels in your offered product portfolio, you can capture significantly more of the value you deliver to your customers, whilst minimizing internal substitution and cannibalization.
Many companies wish to understand potential demand while developing new products and services, since it’s great information to have when you want to forecast expected revenues and profits from new market initiatives. Testing the optimal configuration of products and bundles with potential price-points can be beneficial in order to understand how to bypass rational decision-making structures. This is hugely valuable as the customers' ability to hold all aspects up against each other is often limited. Our analytical approach can secure that all underlying need structures are uncovered so that preference, purchase intention and willingness to pay can be optimized.
Optimizing price-levels requires experts with profound understanding of the products’ value-to-customer, customer and consumer category behavior, and experience in handling the relevant business data to provide clients with the best possible recommendations.
As such pricing is never viewed in isolation but should be seen in the right context. Our capabilities range from an understanding of business strategy, commercial objectives, profitable positioning, portfolio strategies – altogether combined with management structures and pricing software tools.
Our numerous pricing optimization projects have resulted in solid experience in many industries, products, services, and other aspects of pricing, such as brand importance, pack-size impact, claims etc. In this space, we have developed price strategies, price models, price tags and other significant deliverables, allowing us to model market preferences for virtually unlimited combinations of attributes related to pricing in a competitive context.