Pricing design and optimisation
Build a sustainable pricing strategy. In a market, customers have different levels of willingness to pay and will pay in different ways. The right pricing uses pricing research to explore how demand varies by price, in order to identify the optimum price points for products and services and to assess the acceptability of different pricing methods, such as subscriptions, discounts, one-time payments, or product configurators.
Powerful pricing research to maximise value
We provide a complete range of pricing research tools, techniques and modelling for price-based research - for one off products, or for a product range. We can advise on the right pricing techniques to use for a particular market scenario (consumer or B2B).
Our price and demand curve explorer demonstrates how knowing the shape of customer demand, and so price elasticity or price sensitivity, drives the ideal price points for the business. By understanding willingness-to-pay, the business can optimise its pricing strategy and focus on product and service areas that have most value to customers.
- We work with your product or finance team to understand the product offer and range and the type of pricing that is possible - from Good, Better, Best for a price range, to more complex option based pricing
- We determing what pricing research methods would be most appropriate from Simple direct pricing to pricing ladders, van Westendorp or more advanced Conjoint analysis and Discrete Choice Models (DCM)/Stated preference
- For advanced projects we migh look at shop shelf selection models (price-brand SKUs) MaxDiff, Brand-Price Trade Off (BPTO) or configurators and menus
- We work with the team to identify if it is simple re-pricing, or competitive evaluation, or part of a bigger product range or packaging initiative.
- We develop a research programme 'on-screen'. Price has an impact when it comes to making decisions, to make those decisions price has to be in context and appear real - seeing what the price looks like is really important!
- We check we have the sample design right to cover all the key segments and roles.
- We carry out research. This can be web-based for consumer markets or mixed mode phone and web for business markets. We try to make it as realistic as possible.
- From the data we build Interactive price models to estimate revenue and profit effects
- We work with the team to look at demand and revenue models to identify price optimisation points and financial forecasting and to set the final price structure.
For help and advice on carrying out pricing research and methods of pricing optimisation and strategy contact info@dobney.com
