Pricing and profitability management

Price is a very important commercial leverage: even the smallest changes can have a significant impact on profitability. Price promotions and discounts, widely used by managers, often do not bring the expected sales growth but greatly diminish profits.

Price management is a complex activity that is influenced by several aspects of the market and business:

  • Type of products: Tangible or intangible (services), FMCG or industrial goods, etc.
  • Type of customers: B2C / B2B / B2G.
  • Branch. In some branches, firms gain from large sales volumes, at very low margins. In other branches - from the high profitability margins.
  • Consumer price sensitiveness (price elasticity).
  • Competition.
  • Objectives: penetration of the market; maximize profits; increasing turnover; gaining market share and fighting competition, etc.

 Consultex provides advice to clients from different industries on a wide range of topics concerning price and profitability management:

  • Market price analysis;
  • Analysis of product profitability;
  • Analyzing the profitability of customers and different customer segments;
  • Price strategies;
  • Positioning and repositioning of products in price segments;
  • Pricing for products and services;
  • Image factor in pricing;
  • Using discounts;
  • "Price War".