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. Use our comprehensive 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.
Consequently, there are a number of factors that must be taken into account to optimize prices, and these are linked
to various other corporate functions (e.g. costs, advertising /
communications, etc.). Clearly, optimizing prices requires
a comprehensive approach. Merely setting a price is