In an increasingly competitive environment, an effective Pricing Strategy is key to managing your brand
Your approach to pricing can work against you as easily as it can work for you. The difference between success and failure, profit or loss, growth vs stagnation, often hinge on critical pricing decisions.
Analytic Partners’ Strategic Pricing Consulting provides a framework for optimizing your brand’s pricing strategy via comprehensive measurement designs that reveal pricing opportunities and risks.
In order to develop a well-thought out price optimization strategy, the key is to understand tradeoffs between the pricing options available, and how to structure price for your brand or portfolio accordingly.
It all starts with sophisticated modeling to assess consumers’ sensitivity to your pricing, measured in the context of your marketing and other marketplace elements, in order to properly isolate the true response to your pricing mechanisms.
HOW TO LOOK AT PRICING
Once we understand the impact of your everyday price, promotion price, and promotion frequency on your business, we develop pricing recommendations working with you and tailoring the strategy to meet your sales, financial, and growth objectives.
Analytic Partners’ in-depth pricing measurement is aligned with the level at which your promotion decisions are made. We look across your different price tiers, price offerings and distribution channels to incorporate each dimension within our pricing recommendations. We analyze your price at the deepest levels, from changes in the competitive environment to measuring the mitigating benefits from advertising and customer loyalty.
The analysis uncovers detailed pricing opportunities by reviewing specific price points, price gaps, and price threshold, and how they all work together.
Results are delivered through a price optimization tool and we work with you to analyze different price strategies and scenarios to assess further opportunities. Our software is designed to incorporate and build around your business targets and constraints, and to provide you with implementable and high-impact recommendations.
We answer your questions
- How should we strategically price the different segments and brands in our portfolio to drive growth?
- Do we have an opportunity to optimize pricing between every day price points and promotion price points to maintain volume yet drive profit growth?
- What is the importance of our price gap vs. our key competitors and how should it factor in pricing guidelines?
- Where are the most important price thresholds and what is the best approach to cross them?
- Do we have the right balance between promotion, depth of discount, and the number of promotion events?
- How will a price increase affect our revenue, volume, penetration and buy rate?
- Management wants to take a 5% price increase. What will be the impact on sales, revenue, and profitability?