“Anyone who launches new products will immediately appreciate the power of this resource to influence design direction, target appropriate price points, and select materials with high consumer appeal. What I love most is that it facilitates open and powerful discussions across the marketing, design and business teams. It minimizes reliance on “the gut feel” of just one individual in an organization and helps create a unified vision for success.”
How much elasticity is there in a given product category? Is there an ideal price point? Is there a price point that maximizes both volume and profitability? In our experience, most pricing decisions incorporate a combination of “cost-plus” and “price-to-market” pricing methodologies. While both of these are valid perspectives they are often also constraining perspectives. We have tools to enable our clients to go beyond these simplistic methods to discover new pricing/profit opportunities. How much elasticity is there in a given product category? Is there an ideal price point? Is there a price point that maximizes both volume and profitability?
Every product category is different, but there are ways to establish prices without just pricing to market. It is better to employ a meaningful pricing strategy than just pricing to market. We have tools that can identify the highest volume price, the highest profit price and the best mix of the two. We have tools that can be used to simulate competitive response to price changes. Don’t leave price to chance and don’t leave money on the table.
Typical Project Timing: 3-4 weeks.
Money Saving Tip: Combine a pricing study with a concept test to save money.