Products need to be offered at the "right" price point. We'll use market research to help you identify what that is...
A well thought out pricing strategy can go a long way to contributing to brand equity. However, few things can destroy a brand's credibility faster than a poor pricing strategy.
How much labor went into building a product, how rare the product is, or the price you NEED to charge to cover your costs should be considered as only part of your pricing strategy. Far more important is how much a customer is willing to pay. Getting to this magic number isn’t easy, and may require a multifaceted approach.
One of the first steps in pricing strategy is to determine the value or strength of the brand. This can be accomplished through various methods, but conjoint analysis is one of the more common. Conjoint analysis will help establish the strength of the relationship between various price options, product features, and the brand.
Competitive analysis is another important component. How strong are the points of differentiation between your product or service and that of your competitors? Critical factors are identified and measured on a scale. A gap analysis is then conducted in order to determine the degree of separation between your product and competing products.
Once the strength of the brand and its relationship to price is established, and a degree of competitive separation established, a specific pricing strategy can be outlined. If the brand is strong relative to the competition and the effect of price changes on demand minimal, than a premium pricing strategy may be used to reflect and communicate the product’s exclusivity and quality. Other pricing strategies such as an intermittent discount strategy, introductory strategy, everyday low price strategy, or bulk strategy can also be implemented depending on the results from the price/brand/competition analysis.
Establishing a pricing strategy without accurate market research can spell disaster for your brand. Our experience with research tools designed specifically for this purpose will enable you to confidently establish a pricing strategy that will hit the sweet spot.