Pricing Strategy Consulting
Pricing is an underutilized "dark horse" strategy in business. At most companies, prices are set through a mixture of marking up costs, "that's the way we've always done it" procedures, back of the envelope analysis, and quick compromises amongst differing opinions ("let's split the difference"). While it's easy to calculate prices using these techniques, the resulting prices have no correlation with the amount consumers are willing to pay. No customer, for instance, decides the most they are willing to pay for a new television is exactly 2.2 times what it costs to manufacture (marking up costs).
The good news is if any of the above methods resonate with how your company sets prices, hidden profits exist and are available to be capitalized on. The beauty of focusing on pricing is since most companies haven't mastered this strategy, there are a wealth of opportunities to capitalize on.
Benefits of Focusing on Your Company's Pricing Strategy
Small changes in prices can lead to a big profits. Achieving something as small as a 1% price increase can significantly boost your company's bottom line.
Low cost investment - high return. We identify and design strategies to uncover the hidden profits which currently exist within your business.
Quick plant-to-harvest profit cycle. Our projects focus on providing strategies that can be implemented - and start producing profits - in the next quarter. Our goal is for clients to recoup their consulting engagement investment within months of our final presentation.
Key attribute to consumers in purchasing decisions. Ensure your prices and pricing strategies are optimized to be the most attractive to customers.
Activate dormant customers. The creativity of pricing involves developing strategies to attract new customers.
More options better serve customers. The key to better pricing is to provide customers with options and allow them to select the one that works best for them. This results in customers being better served as well as companies earning higher profits.