Marketing & Sales

Pricing

Pricing is a company’s strategy for setting the prices of its products. For decades pricing has consistently been the most important factor determining a company’s return on sales, and thereby profitability. Pricing strategy is also critical to market penetration, product launches, branding and many other important business processes.

Pricing may be the least supported business process relative to its importance. Many companies still set prices based on simplistic heuristics, superficial market research and ‘gut instinct’.

Pricing consultants, on the other hand, are very aware of its critical importance to profitability and overall strategic success, and have developed an impressive range of tools and processes for ensuring optimal pricing strategies.

Not only do pricing consultants have direct experience with hands-on pricing solutions across a vast range of markets and industrial sectors, but they have also incorporated the latest technologies and scientific theories into their pricing strategies, such as digitization and behavioral psychology.

Letting a Consultport consultant guide the course of your company’s pricing strategy is one of the simplest ways to boost profitability and ensure strategic success.

  • Capability Assessment: A capability assessment compares your company’s pricing strategy potential against a benchmark of other relevant companies. A consultant will identify your company’s main value drivers and highest ROI areas, and then target the optimal areas for new or enhanced approaches to price setting.
  • Variable Pricing Performance Tools: In industries where prices are variable given the shifting quality of a product, a pricing consultant can help your company to identify those areas of performance that are directly linked to price and enhance outcomes in a way that ensures consistently higher prices. These tools provide performance metrics tied directly to pricing, so that your product prices are always optimized.
  • Strategic Market Pricing: Whether you are entering a new market, competing against a new market entrant or segmenting a market based on product quality, a pricing consultant will be able to provide you with cutting-edge strategies for dominating your market and optimizing returns. Knowing when to apply pressure through prices and how much pressure to apply is a complex issue, and you want someone with years of experience across a wide range of markets and industry sectors at your back.
  • Digitization-Driven Pricing: Digitization has provided businesses with unprecedented access to information, particularly in terms of consumer behavior. With direct access to your customers through numerous digital touch points, it is possible to employ new dynamic pricing and value pricing techniques to ensure that your product prices are constantly adjusting to the present state of the market.
  • Internal Pricing Capabilities: A pricing consultant will work with you to ensure that your people have the necessary pricing capabilities to maximize profitability and ensure overall strategic success going forward. Many companies make common pricing errors leading to price leakage, damaging price variability and more. By enhancing your company’s internal pricing capabilities, you can solve these key problems with your company’s overall pricing strategy for years to come.
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