Pricing strategy can be one of the hardest things to work out. How much to charge? How much is too much? Am I selling myself short? Companies consistently undercharge for products despite significant sums invested in developing them.
You have only one chance to get new product pricing right. Set prices too high and lose valuable market opportunities. Set prices too low and leave money on the table.
Setting prices for new products doesn’t need to be a guessing game. Market intelligence combined with a strong pricing strategy will win every time. Setting prices for new products is critical, however often, it’s re-pricing established products that often go overlooked when organisations ignore that the market has changed and re-pricing is imperative to stay in the game.
When you know precisely how customers value your products and services, you are able to set appropriate prices. Our approach considers that pricing is not always a rational decision. Customers do not always know why they ‘overpay’ – in fact, consumers rarely make pure rational choices when it comes to pricing!
All this needs to be considered in interpreting the outcomes of a pricing study.
OUR TRUE EXPERTISE
At instinct and reason we are experts in conducting market research that identifies what customers are truly willing to pay, and ultimately the best price. We recommend a price based on optimal market shares, volumes, revenues and profitability depending on your pricing strategy.
- Over 300 pricing studies conducted
- Conducted in over 35 markets around the world
- For a wide range of sectors (agribusiness, financial institutions, beverages, entertainment facilities, public utilities)
WHAT IT MEANS FOR CLIENTS
In the end, you will know precisely where to set new product prices, have a pricing strategy over the product life cycle and be prepared to respond to competitive moves.