There are several ways of increasing profits such as:
Sell more, cut our costs, or raise existing prices.
Raising prices, in principle, is very easy indeed – change the price ticket and price list and tell the sales force to raise prices by 5%. Of course, once we increase prices, customers may start to look elsewhere for a better deal.
It is, however, useful to broaden the discussion on price and think about value – the trade-off between the benefits a customer receives from a product or service and the price they are willing to pay for it.
Idealween pricing research solutions are grounded in the principles of value marketing. Our thoughts on this important topic are contained.
Establishing the value that people put on the goods and services they sell is one of the most difficult tasks for the business-to-business marketer. Finding the right price is a judgement which many get badly wrong – usually charging too little because they don’t realize the value of their offerings.
Companies that sell raw materials or simple components face a marketing problem – how to give their products recognizable benefits which differentiate them from competitors. This article seeks to show how to avoid price cuts by adopting a more professional and profitable marketing stance.
Our services help clients get the value equation right for consumers based on a systematic understanding of the pricing dynamics that influence the consumer decision-making process.