What should we sell and how much should we charge?

SATOV way, go to market, products pricing

Challenge

High performing companies are precise about every feature of a product or bundle of products; if it adds to unit costs, there should be a value to the customer. But customers don’t design the products; often they don’t know what they want until they see it.

Setting price, and setting a system to dynamically manage price is increasingly complex. Companies need to account for inputs such as competitor pricing, impact on brand perception, loyalty, cross-sell potential, and profitability, not to mention the tie-in to a prioritized group of segments and micro-segments within them.

What we do

  • We start with a review of the market and our client’s strategy to determine the role that the product plays therein:
    • Which customer segment are we aiming to serve?
    • What problem are we solving for them?
    • How does this product fit in?
    • How important is price in their decision making?

In a B2C business

  • We leverage a range of market research applications to gain precision on customers’ product and price sensitivities. Tools such as conjoint analysis, discrete choice, Van Westendorp analysis, simulations and MaxDiff can each be applied depending on the question
  • We meld art and science when writing pricing surveys to put the consumer in the most realistic decision-making scenario
  • We create customer or product line profitability models to provide our clients the optimal solution from our survey results

In a B2B business

  • We use qualitative interviews, desktop research and focus groups to get a nuanced view of how clients perceive price, what role it plays and how much room there is to move

In all scenarios

  • We work with our clients to develop detailed testing programs to evaluate if product and pricing changes have hit the mark

Contact us to get started. 

SAMPLE SERVICES

  • Product line profitability
  • Competitive benchmarking
  • Customer profitability analysis
  • Category planning
  • Conjoint analysis
  • MaxDiff
  • Market simulation

SAMPLE PROJECTS

Unbundling products to drive profit

June 9, 2015

RELATED INSIGHTS

Flying under the radar: Why WestJet may be missing an opportunity with its premium economy class

| Customer experience, General news, Go to market, Loyalty and retention, Product and pricing | No Comments

Blog post by Mark Satov Nothing like a long flight to clear my mind! I get uninterrupted time with my email inbox, my list of overdue pursuits and just delightful…

Monetizing Time

| Customer experience, Product and pricing | No Comments

Blog post by Ky Swift I was thirteen, and I was waiting in line at the theatre to see one of my all-time favourite movies, Wedding Crashers. To avoid sitting…

Last Class Seating

| Customer experience, Product and pricing | No Comments
Why is everyone complaining about cheaper airline tickets? Pricing practices aren’t always popular. Actually, the best pricing practices are often unpopular. The recent announcement by American Airlines which introduced basic economy...
dynamic pricing

Eye on the ball: the opportunities and potential pitfalls of dynamic pricing in sports

| Product and pricing | No Comments

Barry Bonds’ record-breaking 762nd home run cost the San Francisco Giants hundreds of thousands of dollars. On an absolute financial basis, the 2007 game was a resounding success. The stadium was packed; memorabilia sold like hotcakes. Yet amid the thunderous applause of 40,000-plus fans, one man was fixated on the opportunity cost of this historic event.