Selling more and cutting costs entails considerable effort. Increasing prices is easier: The price ticket is changed, the price list is reprinted, or the sales force is told to add 5%. With costs unchanged, a 5% price rise goes straight to your bottom line – it couldn’t be simpler!
We don’t need to be an economist to understand the link between the prices charged and the volume sold. Customers can buy from a competitor because of a price increase, switch to a cheaper substitute, or even stop buying altogether.
To find out more about selling more profitably, take a look at our animated video.
To find out more about different pricing strategies and how to choose the right one for your business, why not take a look at our interactive infographic (click on the screenshot to view).
The fundamentals of value come down to the trade-off between the benefits a customer receives from a product or service and the price they will pay for it. Customers do not decide to buy just because of price. Rather they are driven on value buoyed by the disparity between the benefits of a product or service and the price that is charged.
Pricing strategy research can help to verify pricing assumptions as well as answer the questions of where price/product trade-offs may lie, in addition to where extra value can be delivered.
Pricing research needs to take numerous factors into consideration, such as emerging trends in the market that may alter perceptions, product inertia or even history of the marketplace (i.e. order of supplier entry into the market).
To read one of our publications on pricing strategy research, follow the link below:
Our techniques are designed to understand the trade-offs that respondents make when selecting and acquiring products and services, by using different price sensitivity models and value maps.