High performing companies are precise about every feature of every product they sell; 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:
- 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
- We meld art and science when writing pricing surveys to put the consumer in the most realistic decision-making scenario
- We create customer and product line profitability models to provide our clients the optimal solution
In a B2B business
- We use qualitative interviews, desktop research and focus groups to get a nuanced view of the role that price pays and how clients perceive their current price
In all scenarios
- We work with our clients to develop detailed testing programs to evaluate whether product and pricing changes have hit the mark
Contact us to get started.
- Product line profitability
- Competitive benchmarking
- Customer profitability analysis
- Category planning
- Conjoint analysis
- Market simulation