PriceGain helped a publisher of trade magazines fend off competitive advances by internet-based media and increase profits by 34%.
Situation: Long-term price and circulation stability made potential changes difficult to judge.
Our client publishes the major business paper targeting the farming and forestry industry in its region. Because the management had determined that there were few prospects for greatly increasing circulation or readership, subscription durations and prices have been stable for many years. They wanted to improve profitability with a subscription price adjustment without suffering a drop-off in circulation.
Solution: Web survey revealed consumer demand for existing as well as new subscription durations.
PriceGain established the relationship between prices and demand for existing as well as new subscription lengths through online interviews with subscribers. We then factored that relationship into a customized optimization model that determined the most profitable offerings and prices.
Result: 34% profit increase realized by implementing new pricing and subscription plans.
The client introduced new subscription lengths and new prices on existing subscriptions. Our changes resulted in a 34% profit increase with less than 1% loss in circulation. The actual outcome was very close to the model forecast. This projects success led to similar projects for the publishers other titles.