PRICING is the heart of your company. All activities, starting from product or service design, through the sales process, marketing, to customer service, aim to provide a justified price to the customer. In such an approach, price becomes the exchange rate of the value you create in the market.
In the marketing approach, PRICING is the only Marketing Mix (product, price, distribution, promotion) element responsible for generating revenue. The remaining elements of the product sales strategy, although equally important, in the accounting sense, are the company’s costs.
PRICING IS THE GREATEST PROFIT LEVERAGE
Did you know that by successfully introducing a 1% price increase you can achieve an increase in operating profit as much as four times higher than a 1% reduction in fixed costs?
That is why PRICING is the greatest profit leverage in your company.
EFFECTIVE PRICE STRATEGY
Many companies focus mainly on costs when setting prices. However, an effective pricing strategy should start with an understanding of the value of the product or service perceived by customers and the way they make their purchasing decisions.
Our planning experience shows that customers are not well informed about prices and the full selection of the offer, so they often do not decide on a purchase in a fully rational manner. However, purchasing decisions in many cases follow certain patterns of behaviour that can be anticipated and influenced by effective price and promotion presentation.
Therefore, in our approach, PRICING is about discovering, anticipating and influencing consumers’ perception of value and price.
Don’t waste any more money because of the wrong pricing!
Contact us, we will help you to use PRICING to increase your margin and influence the acceptance of prices by customers.