Use the PRICING PILOT to scope out your pricing options

Finding the optimal price is no easy feat, especially in light of a saturated market, increasing price awareness and intense competition. Established price management systems are no longer enough, making optimization even more challenging.

But tackling this challenge is well worth it: Optimizing prices boosts companies' return on sales by 3% on average. No other area offers such potential. Participate in our comprehensive and ongoing benchmarking study to identify your company's potential –and tap it rigorously.

Demand and profit functions do not always help find the right price, as they only represent one aspect of pricing. The optimal price can only be set if the entire pricing process is improved.

Here, the old adage rings true:the chain is only as strong as its weakest link.

What's more, simply identifying and setting the optimal
price is not enough. It also has to be communicated to
the customers, who must be convinced that it is actually
the optimal price for them. And don't forget that your prices
must also be enforced, and not allowed to be watered down
by subsequent discounts. Finally, non-operating costs
should not distort the price calculation.

The figure shows all the factors that must be taken into
account to optimize prices, and how these are linked
to other corporate functions (e.g. costs, advertising /
communications, etc.). Clearly, optimizing prices requires
a comprehensive approach. Merely setting a price is
insufficient.