Great product innovations are nothing without customers willing to pay for them. What is the optimal value a customer puts on a new product or, for that matter, a new feature? That is an essential question that needs to be answered long before products are launched. Or, perhaps your product line needs a price increase to cover rising material costs; perhaps you are rebranding or changing your product and brand mix; perhaps your channels of distribution are looking for variety in branding and pricing. Whatever it might be, projecting the impacts of pricing decisions is an extremely important piece of your strategy.
Adding a new product or line extension into your offer at retail may look like an easy decision but without the keen insights of pricing models you may be missing the fact that you will be cannibalizing your existing sales and not adding incrementally to your bottom line. You know that if you sell through big box retailers, as well as regional retailers and independent dealers, that they want differentiation in mix and pricing. What’s effective pricing and product mix at one does not necessarily translate to effective mix and pricing at another. How do you know what is that proper mix and pricing across sku’s and across your brands?
Without our expertise and experience, you may make a monumental mistake. We have long been known for our ability to develop sophisticated pricing models and market simulation tools that provide accurate projections of pricing decisions. Using a suite of conjoint methods, as well as other techniques, our pricing analytics team delivers not only price elasticity, but the full implications of pricing across your products, your brands, your distribution channels, as well as those of your competitors.
For more information, contact us at 502.271.5250 or via email.