A great pricing strategy ultimately aims to do one thing -- set prices that are as close to the customer’s willingness to pay as possible. At PriceBeam, we specialize in doing just this by providing a state-of-the-art pricing research solution that accurately measures the customers’ willingness-to-pay; but at the same time, we also understand that different firms have different needs and options.
Our willingness to pay research can be used for several pricing strategies, the most common being the value-based pricing strategy where prices are simply aligned with willingness to pay.
Our pricing solution will carry out the research and present the results as a graph like the one above, which can then be used to identify the price point that will maximize profits or revenue (whichever is the aim).
Moreover, some companies may be selling thousands of different products, and so, grouping products, i.e. using a price banding strategy will be an interesting alternative. In this case, willingness to pay research is conducted to create a group benchmark or a price band, to which other products in the same price band are compared.
Finally, companies apply our pricing research solution to position themselves against their competitors: rather than employing a competitor-based strategy, where prices are based on competitors’ (usually wrong) prices, firms should still recognize competitors’ prices so that the brand positioning is mirrored in the price point.