Are you in the process of introducing a new service or product and unsure about the appropriate pricing? PriceGain assists companies in determining the prices based on perceived customer value and customers willingness to pay. Before setting the price, careful consideration of the content of your offering is essential. Only when the offering is clearly defined can you begin pricing.
PriceGain employs three different methods to create customer-oriented offerings that lead to increased growth and profitability:
1. Internal workshops and business case analysis 2. An attribute survey 3. An attribute survey and business modelling
Benefits and why you every company should do this
1. Increased volume and profitability (Especially when an attribute survey and business modelling is combined) 2. Decreased sales costs (fewer customizations and quotations) 3. It is easier to buy and sell 4. High motivation among salespeople to sell the new offering
Internal workshops and business case analysis
Creating an offering through internal workshops is the simplest method, but it relies on internal perspectives rather than actual customer value. There is a risk that value parameters, believed to be valuable internally, are included in the offering despite being uninteresting to the customer. Subsequently, a business case analysis is used to calculate the price.
Attribute survey to design the customer offering
An attribute survey is a more sophisticated method to determine the contents of your new offering, whether it is a product or service. The advantage of conducting an attribute survey is that it provides you with quantitative data of customers varying needs and preferences, instead of gut-feel, on which parameters your customers appreciate. More information about creating customer oriented offering can be found here.
Attribute survey and business modelling
The most sophisticated method is first to conduct an attribute survey to create an offering based on the customers’ needs and preferences and then employ business modelling to calculate the prices. This method enables measurement of customers’ actual willingness to pay. By analyzing how price changes impact the customers purchasing behavior, insights into future volume and profitability can be gained. This information allows for well-informed decisions based on the expected effects of price adjustments on volume and profitability.