Product and Service Pricing Optimization
Management Consulting for Small and Mid-sized Companies
Identify and execute the most effective pricing strategy to drive customer behavior to benefit you the most.
"It is not possible to fully realize the profit potential of a company without an optimized pricing strategy." - Bryan Mason
Ask yourself, how do you price? A typical answer is that you price similar to the competition, but just a litter less. This is a terrible strategy because you won’t be the lowest cost producer. You need to create value for the customer and charge a little more for it. However, pricing can be used in many ways.
There are many pricing strategies available to drive customer behavior depending on an individual company’s goals:
- Get more new customers
- Get customers to spend more with the transaction
- Drive customer purchasing frequency
- Get people in with a specific offer but sell some of them something else
- Drive purchases on specific days
- Drive purchases at specific times in the day
- Get customers with specific target income levels
- Variable pricing based on availability of product
- Variable pricing based on time between purchase and use
- Cost plus markup
- Pricing relative to competition (higher, lower or matching)
- And many more...
The key is to identify what combination of pricing strategies is right for your company. This depends on each company’s situation and the behaviors that are most profitable for that company.
Apollo utilizes many different quantitative techniques to assist in determining price sensitivity including Regression Analysis (Econometrics), Time Series Cross Sectional Pooled Regression, Conjoint Analysis, Discrete Choice Estimation and Stated Preference Research.
Management Consulting Company in Providence RI – Specializing in Price Optimization
Apollo can assist your company to:
- Identify the customer behaviors that drive profitability
- Develop pricing models
- Estimate price sensitivity (elasticity of demand)
- Develop strategic pricing strategies to ensure long term competitive success (click for more information)
- Develop a promotional strategy so as to reduce or eliminate over-discounting
- Identify the best mix of product features including price (click for more information)
- Accurately identify all costs to ensure full cost recovery
Optimize Your Pricing
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