The first stage in developing the price of a product or service is to establish the base price (usually a function of cost) as this underpins and informs every decision made about price.
We assist businesses in establishing all of the factors affecting price determination (value to buyer, costs, competition, legal and marketing) before deciding on the pricing objectives.
There are three main pricing objectives that any business needs to base it's model on which are:
1. Profitability objectives;
2. Sales/volume objectives;
3. Other objectives (stabilisation/survival/barrier/reputation)
From here we assist businesses in deciding on the pricing method that is most appropriate to achieve their chosen objective as well as building appropriate review systems and protocols.