How we create success for your business
Sometimes we try and be as general as possible, too appeal to as many of you as possible. We do this because we genuinely believe that all businesses can benefit from working with us. But this has a downside, we are not particularly specific on how your unique business can benefit from us. Because we are a one size fits all company, but that’s only because we are lean and agile.
Working in a B2C environment
Across the US, B2C companies outnumber B2B companies with 1.6:1. Meaning that for every B2C company, there are 1.6 B2B companies.
This inevitably means that most of our clients cater to consumers rather than other businesses. We have plenty of case studies featuring B2C companies. But a B2C industry we have a lot of experience in is the golf industry, given our partnership with Golf Datatech. We helped one of our clients to better price one of their golf clubs, which resulted in their revenue, on that specific golf club, increasing with $4 million YoY. But in another way, their absolut triumph was that the over all sales for that very same golf club remained unchanged. Certainly proving that they were leaving money on the table, by not optimising their prices.
We have many more success stories, and some also see an increase in their sales, along side an increase in revenue. What is invaluable to our B2C clients are the demographic segmentation and the insights of what their customers are most willing to pay for.
Working in a B2B environment
All though significantly more challenging than working with a B2C company, we have great experience in working with B2B companies too. Working with B2C companies are challenging in the way that we have to ensure the quality in a more granular way. This relates to the fact that the scope of the companies potential customers (or decision makers) are far slimmer than for a B2C company.
In order to tailor the research and capture the true willingness to pay, you need to ask the right people at companies. Not just anyone working in the industry, but the decision makers.
Nevertheless, this is far from impossible. There are many panels out there and we have access to a majority of them.
A particular case that is worth highlighting is a project management solution selling to other business in the US. This became the company’s primary lead generation tool, as an attractive user experience with the software and the company. It was also able to raise prices twice during those six months, with virtually no loss of customers.
Selling products
Consumers buy products on almost a daily basis, and these can vary from a gallon of milk to expensive designer shoes. Selling products as a B2C company the spectra of your price elasticity is very broad. In economic down turns consumers are more willing to give up the designer shoes, but not the milk. This means that your you have a lot to gain by measuring the willingness to pay.
By contrast if you are a company selling products to another company, your product is likely a component in their product. This means you are probably more inelastic and they have a higher need for your price. But depending on the market, these contracts are usually huge, so you cannot afford to loose a client by setting the price too high. But then again, what an invaluable insight to know what they are willing to pay for your product.
A winning product
We have worked with many products, and above you could read about our extensive knowledge in the golf industry. But we have a vast knowledge working in other sporting goods. This company is active in, Germany, United Kingdom and Sweden, to investigate their new electric bike.
According to our findings, electrical bicycle owners have had lower demand than other types of “bike” buyers and, instead, everyday cyclists have higher willingness to purchase. We also identified which price to set in each medium in order to generate a large number of sales.
Selling services
Whether you are selling your service to consumers or to other companies, this can often be tricky to estimate a price. The difference between a service and product is that often you are selling something intangible, like a skill or time. This is more difficult to estimate, since when we are measuring a product, we can easily look at the margin and cost of making said products. But calculating the costs of what your time is worth.. Well that’s impossible.
What you can measure is of course what other people thing your time is worth, and their willingness to pay for your time or skill (etc). Then you can set an accurate price and let go of all the philosophical dilemmas and questions.
A winning service
We have helped many companies to price their service. It’s a big difference in willingness to pay between B2B and B2C industries. A success story that we light to highlight is an app in the B2C market.
They application was previously free, and with our findings they could increase the price to $499. Instantly making a profit without loosing any customers.
Conclusion
There are of course many companies that cross sell, they tick all the boxes and sell both B2B, B2C, products and services (amazon to mention one). But regardless, you should strategise differently according to each segment. Be in charge and own your data, to make the best pricing decisions.
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