home1x1.jpg

internal5x2.jpg

Pricing

Finding the right pricing strategy can be complex. It requires a clear understanding of what customers will pay, an ability to accurately model pro-forma implications of pricing strategy changes, an assessment of the positioning implications of a changed strategy, and attention to regulatory and legal issues, among many other considerations.

Strategic Insights has significant experience researching markets to determine pricing. We'll guide you to an optimal balance between market penetration and revenue growth. To do this, we combine extensive secondary research and deep analysis of your internal constituents with solid market insights.

Our analysis addresses business issues such as:

  • Introductory product pricing
  • Pricing impact on contribution margin or market share
  • Pricing elasticity or flexibility
  • Potential competitive response

Case Study - International Supplier of IT Consulting & Outsourcing Services

Our client asked us to design and construct a pricing model to address variable structures including hourly and fixed bid pricing. We tested a variety of pricing scenarios to determine the plausibility and profitability of specific pricing plans; first testing concepts for outsourcing services and then establishing a pricing model and some rough ranges. As a final step, we established firm penetration and maximum prices for discrete service offerings.

This pricing analysis and model design helped strike an ideal balance between market penetration and revenue accumulation. It was also in perfect alignment with the client's overall corporate strategy of delivering high-end consulting and outsourcing service at market-realistic prices.