Our Philosophy. According to a study of Global 1200 companies, on an average, a 1% increase in the price would lead to an increase in operating profit by 11%. Seen another way, a 10% increase in price can more than double the profits, assuming the sales don’t slide. Even if the sales were to dip somewhat, profitability can be enhanced significantly. Pricing is arguably the most accessible lever and does not require significant investments or resources. But many companies do not utilize it effectively. This is where we come in.

We provide a series of guidelines for creating effective base prices, and then modifying them. Since consumers vary in their preferences, motivations, and propensity to spend, they put varying degrees of emphasis on price in their purchase decisions. A nuanced appreciation of this can really improve your bottom line. We believe that pricing is an exercise in math and behavioral economics. As such, we bring creative insights to boost your profitability.

Our Approach. How sophisticated is your company’s pricing strategy? While it can get very technical, broadly speaking, there are five levels. At the very basic level, companies pursue cost plus pricing to cover their costs and remain profitable. The second level involves market based pricing to ensure they remain competitive. The third level gets more refined, and typically includes price-sensitivity studies. At the penultimate level, companies focus on brand building and differentiation so they have more control of their prices. Companies at the top level of sophistication focus on creative strategies to get the maximum leverage out of pricing. We can certainly guide you up this pyramid. But only you know the starting point. Where in this 5-level hierarchy does your company stand?

We provide a modular approach to pricing assignments, so that you only invest what is absolutely needed.

To try our risk-free, no commitment offer on pricing projects, contact us here.