Traditionally companies priced their products on the basis of cost, as the customer’s willingness to pay was hard to assess. Even today specifying the value of the offer and its components to the customer is an area fraught with assumptions and intuition. However cost and value to the customer are often in strong contrast to each other.

Being able to assess both impact factors allows companies to fine-tune their offer and to tap additional profit potential by answering questions like:

• How much price premium should a company charge for its strong brand?
• Which inexpensive, but highly valued components might be added to a product to allow a price increase?
• Which high-cost, but low customer-valued services might be eliminated to increase profit?
• How can customer segments be served with a differentiated price architecture?

We help our clients to systematically manage their product or service offer by adding transparency on the customer value of their offer and its components. To achieve this we apply complex statistical tools (e.g. Conjoint Measurement) that quantify value to the customer by analysing customers’ product choices in experiments. Offer and price are optimised with the help of market simulations that take potential competitor reactions into account. Promising offer options are tested rigorously and optimised before being introduced into the market.

We lead our clients through the different stages of the process and provide tailor-made approaches and recommendations.