Pricing your products and services can be a difficult task. Pricing consultants can help analyze your brand in relation to the market to determine an ideal pricing strategy.
The marketing mix theory covers four very important factors in your business plan: product, price, promotion and place. While price is a primary factor for companies and consumers alike, it still remains a mystery to many. Regardless of the product or service you are selling, price is often a key determinant in the outcome of your sales for that year. Without the proper expertise you may be missing out on sales or potential revenue. A pricing consultant can help you determine the costs for your products or services in order for you to achieve specific goals beyond just increased profitability.
Optimal Price Target
Is your current price set to simply make the most on each transaction? What if a lower price per transaction led to a larger number of transactions? How about a price that increases profitability by deterring others from even entering the market? A pricing consultant optimizes your brand’s pricing according to what the market will pay, navigating the price toward specific pricing functions, leading to increased profitability. These additional pricing functions can often include increasing your market share or entering a new market.
In determining your pricing strategy, a pricing consultant will take into account a variety of data that you may have not considered. The consultant will look at current pricing, volume, production and a number of other financial reports in order to determine a pricing strategy that will optimize your sales. The application of this information and its implementation into your current pricing scheme gives customers an opportunity to see the value of your product or service. A simple Internet search permits customers to compare prices from a variety of locations and companies. The ease of this search has increased the competition significantly, making it more difficult for companies to perfect a profitable pricing strategy.
In setting a pricing strategy, you choose from a variety of pricing models, from high-low pricing to premium pricing to target pricing, and a variety of other models from the pricing arsenal. Pricing impacts brand positioning in the mind of the consumer. Premium brands will have a different pricing strategy than value brands. In many cases, price is critical since consumer purchases often come down to them comparing the final numbers online. Determining an optimal price, which emerges through the gathering and studying of research data, helps your business maximize profit. Having a pricing consultant employ all of this knowledge to help your company make the most of every transaction is a big advantage.
Working Together to Build Your Company
Mindspin can consult to provide foundational pricing research and reports for smaller businesses. For more in-depth research and recommendations, a pricing consultant could be the answer. Given the broad range of information a pricing consultant would work with, and the precision of the consultant’s application of this knowledge, a pricing consultant can make a big impact on your brand’s growth and competitiveness.