How does it work?
10 key stages to a better price.
We have developed a unique approach based on years of experience and feedback from working with clients in many different sectors.
By using a clear methodology, we are always able to define the core challenges for your business and devise solutions that will enable you to achieve your objectives:
1. Business Goals
What are your goals for your business, and what are your revenue & profit targets? What is your business purpose and positioning, and what sets you apart? What are your current issues and challenges with regard to your pricing? (Includes analysis of your sales, prices and cost KPIs to understand patterns and trends.)
2. Customer Price Segments
What are your customer’s need and wants? How do your customers value your product and what are their levels of willingness to pay?
3. Competitor Benchmarking
Who are your nearest competitors, and what are their key differentiators and price points?
What are your customer’s attitudes to price, and how do they judge the value of your product or service?
5. Pricing Strategy
Define your core price positioning, your ideal pricing strategy and your target price points.
6. Product Offering
Redefine and update your product offering & proposition to support the recommended pricing strategy.
Assess your unit costs (resourcing, planning, production) to ensure you achieve the best profit margins for your target prices.
8. Price Model
Create a new price model and use scenario analysis to assess the impact on your P&L forecast and your business plan.
9. Price Implementation
Devise a price implementation plan, train your people to sell your new pricing strategy and clarify how to communicate price changes to your customers.
10. Monitor your Prices
Create a monthly “pricing dashboard” to enable you to easily assess your pricing performance, monitor margin leakage, and ensure you realise your desired business benefits.
This is our full methodology but not all stages are compulsory. We will suggest an appropriate approach based on a clear understanding of your business needs and requirements.
We take a collaborative approach with clients and have found that best results are achieved when all the key players involved in pricing are included in the project. This can include your sales teams, customer service advisors, marketing and finance people as well as your senior management team.
Get in touch if you would like to discuss effective price strategies for your business.
“Mark from PriceMaker has a unique way of articulating the vagaries, pitfalls and benefits of different pricing strategies and the impact that these can have on your business.
His pragmatic and sensitive approach means he communicates effectively with a wide variety of stakeholder groups and thus is able to help create internal alignment.
If you have a pricing problem to solve or believe you need to increase volume or improve your value/price equation I would highly recommend you engage Mark to help you.”
“Mark’s pricing strategy, advice and recommendations have already put us into profit. We engaged Mark to help support us with the launch of a new service offering to clients. His advice was instrumental both in pricing strategy but also most importantly in the whole value proposition.
His support covered the language we used and how we framed our various offers to our target customers. We found him to be good at challenging us, yet at the same time supportive. We’re already making sales and as this is an ongoing service I know it will help to improve the underlying profitability of our agency.”