Pricing Consulting Services
- Pricing Assessment
- Pricing Strategy
- Pricing Analytics Packages
- Pricing Optimization
- New Product Pricing
- Pricing Capability Development
A typical offering of pricing consulting is a pricing diagnostic, which is an assessment designed to evaluate your pricing capability and identify near-term and long-term opportunities for improvement. We review your market and the drivers of success, evaluate how well your pricing strategy is aligned with your business strategy, and evaluate your price levels, pricing processes, and tools compared to best practices. We conclude with recommendations for near-term and long-term pricing improvements, and quantify a range of what the improvements could be worth.
A pricing assessment is generally data and analysis-intensive, and we can either guide you through the analyses or receive your data set and do the analyses for you. By applying some market tested analytical approaches to your transaction data, we can estimate customer price sensitivity and willingness to pay and compare those estimates to your current price levels. When we combine the analyses with a review of your strategies, pricing processes and tools, a picture will emerge with your path to world-class pricing.
A diagnostic is generally data and analysis-intensive, and we can either guide you through the analyses or receive your data set and do the analyses for you. By applying some market tested analytical approaches to your transaction data, we can estimate customer price sensitivity and willingness to pay and compare those estimates to your current price levels. When we combine the analyses with a review of your strategies, processes and tools, a picture will emerge with your path to world-class pricing.
Strategic Pricing Solutions works with clients to develop data-driven strategies that are consistent with their business strategy. We review the market(s), value proposition, competitive positioning and current pricing strategies and architecture. We also analyze the historical results of existing pricing strategies and conclude with recommendations for enhancements or modifications to your current pricing strategies.
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For those without resources or data analytics tools, we receive a monthly or quarterly data feed and we provide a series of pricing analyses. The packages include price realization and price effectiveness by business unit, location, segment, customer, and other dimensions relevant to the client’s business. Price elasticity and the impact of price changes on volume can also be determined. Pricing analytics packages offer clients a way to quickly build strategic pricing capability and begin to implement margin-improving changes without the time-consuming process of hiring new people.
SPS works with clients to integrate pricing strategy and analytics to recommend a pricing architecture and process that will improve margins without sacrificing volume. We develop pricing models with estimates of value and price sensitivity by customer segment and product type, and we estimate customer-specific willingness to pay. We then recommend an optimized target price structure, including customer and product-specific recommendations, plus risk mitigation and a price management process. Equally important, we provide the client a durable framework for evaluating and updating target prices and managing deviations from targets, ensuring price optimization is a sustainable process.
For clients preparing to develop or launch new products into the market, Strategic Pricing Solutions works with your R&D, Marketing, Sales, Finance, & Pricing teams to identify market dynamics and customer segments and estimate value by segment.
New product pricing considers whether a new product is revolutionary, evolutionary, or me-too, and must also consider industry and competitive dynamics. Is the company is already a market leader or a new entrant? Is the market for this type of product growing? How will competitors react?
We present pricing strategy options and potential impact ranges, plus a recommended new product price structure.
Pricing Capability Development
We help build institutional capability within client companies. This includes change management planning & implementation, transferring our knowledge to clients and building expertise within client pricing teams, sales training, and process design to reinforce new pricing strategies and tactics.
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