The key here is to ensure your pricing strategies match your business model. Should your pricing be demand/supply driven, cost driven, or value-based? Or, a mixture of these?
How do you set prices to maximize Gross Profit versus sales volume? Very few businesses do this essential task well. Our quantitative price setting process ensures that your pricing will reflect Maximum Value Capture along with Cost to Serve, to place your price at the proper point on the price-elasticity curve to ensure maximum income yield.
Do you have that one big customer who delivers 60% of your Revenues but only 15% of your gross profits? Power Buyers use their leverage to drive your prices down. But they care about value also; there are specific strategies that help you win better profitability when dealing with Power Buyers. Let us help you level the playing field!
One day your very best customer will tell you "I have received some lower prices from your competitors"! How will you respond to that? The first words out of your mouth will frame how this negotiation will go. Let us help prepare you to win in this most universal of business confrontations. Giving in is not your only option!
Value-based Pricing requires customers to understand the value you are delivering. We can develop Market Communication messages to educate customers to drive them toward a buying decision.
Innovation based products appeal to less price-sensitive customers initially; the "early adopters". Use this knowledge to price effectively in the beginning of your product life cycle, and throughout your product life cycle!
Whether your Competitive Bid is via sealed bids, competitive Contract negotiations, or Reverse Auctions, having a bidding strategy that fits your business model, market conditions, and customer requirements is essential for success and profitability. Let our years of experience create a bidding process that works for you!
You have offered a Price to your Key Account. Now you will need to negotiate toward a final price which meets your needs and wins the business. We can assist in planning and directing those negotiations.
Pricing is a process, it is not a "one and done". Costs can increase, competitors can lower prices. When and why do you discount prices, increase prices, hold firm on prices? These are critical Pricing Management issues we can guide you through.