Earn the profits you desire with a strategic approach to pricing
We use behavioral economics to quantify perceptions of value, increase customers' willingness to pay, and reveal opportunities for profit generation.
Who needs a pricing strategy when you've got a great offering?
Many business owners believe the old lie: if they build a great product, they will succeed. In other words, "build a better mousetrap, and customers will beat a path to your door."
Even if this statement were true - and it's clearly not - popularity does not guarantee profits. There are plenty of companies that have struggled for years to break even as they fade into bankruptcy.
Pricing strategy is important for your business
Many of us have been taught that hard work is the key to success.
It just isn't true. Sure strong efforts can help, but the path to profitability is founded upon the ability to create, identify, and capture customer value.
Strategic pricing is more than just picking a number
When companies have trouble selling their goods, their first action is to drop their prices. This shouldn't be surprising. Almost every textbook has teaches readers that this is the only possible approach.
Price drops often work, but it's almost always the most expensive way to "solve" the problem of low sales. It costs firms dearly in terms of lost profits and in terms of damage to their reputations.
Signs you need a strategic pricing consultant
- You set your prices once and never changed them
- You know you need to raise your prices, but you're not sure how to do it
- You don't know what customers value most about your offerings
- You have many offerings and aren't sure if they are competing against each other
- You aren't sure how your offerings can compete against others in the market
Here are just a few ways that we can help your business:
- De-risk the buying process through the development of tripwire offerings
- Increase profit per sale by introducing alignment with measures of customer value
- Maximize shoppers' perceptions of value through optimized differentiation
- Enhance per-sale revenues through effective offer bundling
- Target more profitable customer segments via intentional signaling
- Increase margins by preventing product line cannibalization
Your competitors probably never gave a second thought to strategic pricing
Let's be honest, most businesses owners will do just about anything to avoid thinking about their pricing.
This isn't because they are lazy. It's because they just don't understand it - and who can blame them?
- Schools don't teach pricing
- Employees don't study pricing
- Businesses don't have departments to analyze pricing
Of course pricing isn't just about profits
Good pricing helps firms enter new markets, fend off dangerous competitors, attract more desirable classes of buyers, and emphasizes the value that businesses offer to their customers.
Can strategic pricing help your business?
If you're looking for pricing help...
You've found it!