Pricing Optimization
Pricing that makes sense for you and your customers

The Challenge
Price is one of the first things to catch a potential customer's attention. It is also one of the most influential drivers of profitability. At the most basic level, companies need to strike a balance between "pricing themselves out of the market" and "leaving money on the table." But, effective pricing is not as simple as picking some midpoint compromise. Numerous factors must be considered such as:

• Short-term vs long-term financial goals
• Competitor price levels and potential reactions to price changes
• Revenue predictability (e.g., one-time fee vs on-going payments)
• Product line interactions (e.g., loss leader pricing)

The Solution
Accèvero Group can help your organization develop an effective pricing policy. Typical activities in a pricing optimization project include:

• Developing a profile of competitor pricing
• Developing alternative pricing policies (e.g., converting from a one-time purchase price to a per use price)
• Testing alternative pricing policies or levels with customers
• Running financial analyses on alternative scenarios

Projects are always custom-tailored and, depending on client needs, can range in scope from a detailed pricing study to a "quick and dirty" assessment. Review a case study or contact us about your specific needs.

The Benefits
Client benefits typically include:

• Shift from tactical pricing (e.g., 25% markup above cost) to strategic pricing (e.g., low-price core product with high-margin accessories)
• "One-time" pricing adjustment and a well-defined process for subsequent adjustments
• Higher and more predictable profit margins