Profitability can be improved by increasing prices, volume, or both. Stumble on pricing for a new product and the road to recovery is a steep hill. Increasing or decreasing prices do not always have the desired effects.
However, there are few other influences like price that can have a short or long term impact on profits.
Vaxa takes a practical yet holistic view of pricing and incorporates research by industry, market, segment, & transaction. We help our clients to rapidly uncover the biggest pricing levers so action can be taken to create differentiated pricing strategies.
Our pricing expertise has helped clients to more clearly see how price changes can affect buying behavior and the impact on future market share.
The following are some scenarios under which Vaxa has helped clients with their pricing strategies & tactics:
- Determining the optimum pricing for new products and services.
- Assessing the impact on sales volume of increasing and decreasing prices.
- Assessing competitor reactions to price changes.
- Gauging customer segment price elasticity.
- Customer reactions to changes in pricing and product structure.
- Assess customer value drivers relative to price.
We use of analytical techniques such as Discrete Choice Modeling for both business and consumer segments when developing new pricing. Discrete Choice Modeling aims to mathematically represent customer preferences for a range of product attribute combinations, including pricing.
To find out more about how Vaxa has helped clients in this area, please contact us at backend@vaxainc.com.
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