We Take the Guesswork out of the Pricing Process
Guessing what the price should be on the day of product launch is not where you want to be. Yet we’ve seen countless examples in large and small companies where this happens. Product Managers are not often taught how to price or are given the power to price. Usually it takes the sales team asking for the price list to get things started.
To maximize profits, you must understand your competitive environment and the value you deliver. There are scientific methods available to help you get the data needed to make key product and pricing decisions. Once you have the data, we create a pricing strategy that makes sense for your market and aligns with your product strategy.
We ask these key questions as part of our process:
- Industry research – what is the demand for the product? What are your competitors doing?
- Product research – what features do customers value and are willing to pay a premium price for?
- Pricing research – how much are your customers willing to spend?
- Product costing – how much does it really cost to deliver that product to a customer?
- Product marketing – how do you position your premium vs mid-tier and low-cost products to maximize profitability? What products do you stop selling?
- Corporate branding – does your brand and messaging/positioning allow you to charge premium pricing?
- Communications – how do you convey the value you are delivering to your customers and sales channel? How do you convey a price increase?