Price is not just the ‘’4 p” component used to capture get a just remuneration for your products or services, it is also,to many a key driver of your image and Value perception. This is why trying to undercut the competition by always pricing below their market rate doesn't always work. People buy because of rational and emotional factors, and to many price represents a promise of quality. People buy certain things because they are expensive, and feel good about it. People have expectations of quality goods, and if a company has a reputation for delivering quality goods and services, they may choose it over the competitor despite higher prices.
When comparing prices, different elements help people switch from the mindset of those looking for the cheapest price and into that of wanting to maximize the value of what they can get.
Pricing research is about finding what customers deem valuable, and the corresponding price they are willing to pay.
When a customer looks at a product on the shelves or consider hiring a service, several concurrent thoughts immediately run through his or her head. Is it high-quality? Is it fast? Is it affordable? Will buying it impact my lifestyle?
In the end, what every customer wants is maximum value for his money. Thus, to attract greater sales, many believe that lowering prices is the way to go. A Pricing & Value Consultant however, can show you that this simplistic attempt at pricing often fails to maximize profit. Pricing increases that do not address the customer's assessment of value will often backfire.
How PriValEdge’s Quick Wins,Toolbox & Pricing Software helped the German Subsidiary or large B2B Group achieve a 5% bottom line impact in first year of Implementation. Chemical Distributor
- $200 million B2B company with warehouse facilities across Germany
- Strategic Business Units include
- Food Industry
– Cosmetic/Pharma/Personal Care
Privaledge pricing consultants wish you an happy new year. Find our Top 10 Pricing New Year Resolutions
A bit of humor for 2014 : Privaledge's resolutions
We promise that this year we will:
1. Work on Pricing transparency
2. Use Pricing and Value as competitive weapons
3. Hire a new pricing manager
4. Develop a pricing strategy plan
5. Develop value based offers
6. Use Competitive Pricing to our advantage
7. Optimize our Promotions
8. Develop Business Cases to support decision making
9.Target our offers more effective
10. Avoid Price Wars !
You leave money on the table if you're not getting as much out of your products and services as you should. A pricing consultant can help you remove ineffective and value-reducing behavior from an ad hoc pricing strategy. Value Based pricing reflects the value of your product qnd what the customer is really willing to pay…so you can capture better the Value of your offer.
There are three main ways how a pricing consultant can help your company move towards Value based Pricing:
Pricing consultants are not just some statistics geeks or Market Research wizard.
They can help in building a vision on how to deliver more value for your customers and how to get properly remunerated for it.
In this purpose, you need someone with real competence and knowledge of Pricing and Value Strategy and who thinks out of the box – that is that can bring Pricing & Value expertise and experience from other industries – to see the issues clearer.
Pricing consultants can provide expertise and sophisticated tools and techniques to support strategic and value-based pricing.
They bring leading-edge pricing research studies, pricing management processes and tools to define an optimal price with the client in accordance with the research.