What is a pricing strategy?
Personal reflections by Per Sjofors, Founder/CEO Every company has a pricing strategy. It may be simple like adding a fixed margin to the cost. It may be pricing based on a competitor’s price list. Or, it may be something more elaborate. Simple pricing strategies have advantages. They are easy to understand, they are easy to implement and it does not take a lot of company resources to...
Read MoreSucceeding With Market Research
Succeeding and Failing with Market Research Introduction The term ‘market research’ means different things to different people. To the specialist, it is a very formal activity involving a randomly selected representative sample (or a focus group), carefully constructed questions, solid statistical methods and elaborate tests of significance. To the generalist, it is a much less...
Read MorePricing an Existing Product
Research Analyst from well known firms have estimated that as much as 80% of products and services in the market are mispriced and that pricing policies can be improved to significantly optimize revenue and profits. How do you do this? What are the barriers? What are the probable outcomes? Read on….. The first steps to optimizing prices of existing products are to take a hard look at...
Read MoreRole of Research in Optimized Pricing
The importance of research in any pricing project is paramount to the projects ultimate success. The purpose of the research is simple; understand in details the value perceptions and decision making drivers and criteria of the buyer and their willingness to pay for your product or service. Later we will discuss how using statistical analysis will reveal optimal price points all along the...
Read MoreTop 10 Pricing Mistakes Companies Make
Mistake #1: Companies base their prices on their costs, not their customers’ perceptions of value. Prices based on costs invariably lead to one of the following two scenarios: (1) if the price is higher than the customers’ perceived value the cost of sales goes up, discounting increases, sales cycles are prolonged and profits suffer; (2) if the price is lower than the customers’ perceived...
Read MoreBest Practices for New Product Pricing
One of the most challenging tasks a marketing organization will face involves setting the “right” price for a new product. New product pricing is complex. It is important to use a process that breaks down the task into manageable elements. An effective process will integrate these elements while reducing risk and increasing confidence in the important decisions to be ...
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