Pricing Strategy

► Determine Pricing Strategy ► Modify Pricing for Improved Profitability

KJ & Co. develops pricing strategies for new or existing products/product lines.  The essential first step is to define the pricing objectives -- e.g., to maximize profits, to gain market share or market penetration, to be a loss leader for other product lines, etc.  The Pricing Strategy includes an analysis of competitive pricing tactics (or pricing of competing solutions where there is no direct competition), a review of industry pricing and discounting practices, and assumed product costs where relevant.  Includes an assessment of the financial impact of alternate pricing scenarios.  For new products, KJ & Co. evaluates the perceived value of the product from the perspective of the target customers.  This typically requires custom pricing research, which may include price/feature tradeoff analysis or other quantitative pricing methodologies.  For existing products, the Pricing Strategy includes a review of historical average selling price, price discounts, purchase patterns, coincident or follow-on purchases of other products and services, etc.  Deliverables include recommended pricing structure, price levels, volume purchase discounts and other discount structures (may include price bundles or other promotional pricing recommendations) as well as an interactive business model allowing the client to review the financial impact of alternate price/volume scenarios.

Clients planning a new product launch or wishing to review and modify their existing pricing strategy/practices will find this service valuable.

Typical project duration*:  4 - 10 weeks