Pricing optimisation
In a market, customers have different levels of willingness to pay. Pricing optimisation uses pricing research to explore how demand varies by price, in order to identify the optimum price points for products and services.
Our price and demand curve explorer shows how knowing customer demand, and so price elasticity or price sensitivity, changes the ideal price points for the business. By monitoring customers' reactions to price and value, the business can optimise its pricing strategy and focus on product and service areas that have most value to customers. Our section on pricing research techniques explains how it works.
Different products and markets use different pricing strategies - such as subscriptions, discounts, one-time payments, product configurators. We create pricing research tools to enable businesses to plan and structure their pricing approach and strategy successfully.
Powerful pricing research to maximise value
We provide a complete range of price research tools and techniques for price-based projects. Our research expertise means we can advise on the right pricing techniques to use for a particular market scenario (consumer or B2B), and we can collect customers' willingness-to-pay data and turn that data into forecasts for sales and revenue management.
- We work with your product or finance team to identify what pricing method 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
For help and advice on carrying out pricing research and methods of pricing optimisation and strategy contact info@dobney.com
