Price Analysis and Decision

Value pricing lies at the core of the most profitable pricing decisions. Companies must fully understand the value that they bring to the market before they can fully capture the profit potential of their products.

While companies in some industries (e.g. pharmaceuticals and automotive) can spend years analyzing the value of their next major product, companies in most industries are forced to make hundreds, if not thousands of pricing decisions each year. Yet every pricing decision that misses the optimal hurts your bottom line.

SKP can help you establish processes, develop tools, and define responsibilities that will help you best answer the following questions based on the resources, information, and time that you have available:

• What is the customer’s perceived value of the our product and service offers as well as those of our competitors?
• What is the profit optimal price we should charge for our products and services based on this perceived value?
• Which price changes for our products and services would have the most immediate and dramatic effect on our profitability?
• How will changes in price effect our market share? How will they effect our profitability?
• How should prices be segmented across industries, customer groups, or even individual customers, to increase profitability?
• Who should conduct this analysis and make the final pricing decisions?

Click here, to return to the selection of industries and issues.