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".