PRICING

In successful organizations, accomplish what they set out to do, powered by engaged employees with the tools and motivation to get the job done. In fact, the best performing organization structures are better at decision-making.

Whether startups, new companies or companies operating in new categories can adopt disruptive pricing strategies that define their business model. This approach can lead to more value by unlocking customers and suppliers through a new model that reduces the downside risk and increases the upside for all parties. For example, such models include profit sharing cost-of-materials triggers, as a service as opposed to capital investment, etc.. However, to succeed with this pricing strategy, companies need to conduct in-depth analysis and model dynamic scenarios to measure and optimize parameters for optimal returns. In addition, reactive measures needs to be built-in to the model on how to manage the downside when competitors respond and when copycats follow through. Companies can gain substantially by disrupting the pricing models, but sustaining the advantage has to be planned in advance by modeling all scenarios.

Other pricing strategies could be incremental in nature and focus on growing revenue by changing prices as an enabler to bring in more business. This includes strategies such as introductory promotional offers, freemium subscription models, product bundling, small regular price increases, defending against unnecessary giveaways, segmenting offering, applying surcharges, passing on changes in cost to serve, and pricing in additional sources of value etc.. Success in this model requires maintaining profitability by keeping churn low, monitoring customer acquisition costs, and reacting to competitive dynamics to avoid price or share wars and keeping clear insight into margin leakage and relentless discipline in rectifying the issue.

WHY EGNYT

  • We have a deep understanding of pricing strategy. Our world-class approach takes you from discovery to action with a capability assessment  and a rapid diagnostic to identify your opportunities across value drivers, and defined initiatives that target the highest-ROI areas
  • We develop analytics tools to screen for price potential, identify price leakage, uncover unjustified price variability and assess your internal pricing options
  • Working cross-industries, we identify critical steps you can take to transform your revenue growth management capabilities and boost your pricing power an increasingly disruptive market

EXPECTED RESULTS

SUSTAINABLE PROFITS

Monitor profit margins in real-time to validate strategy and measure price changes impact on the bottom line

DYNAMIC RAPID RESPONSE

Dynamic monitoring, rapid and systematic response to changes in the marketplace

ANALYTICAL TOOLS

Customized analytical capabilities and tools you business needs to keep improving

REAL-TIME PRICE OPTIMIZATION

Dynamically optimize prices for maximum value in real time
anirudhsophatisawriter@gmail.comPricing