The Most Underestimated Marketing Lever
Pricing is the most underestimated of the four P's and at the same time the most powerful. Companies invest in pricing only a fraction of the time and resources they invest in understanding their marketing.
Historical Data Analysis
We build statistical models that take historical data and determine the unique impact of price changes on sales after accounting for the impact of other factors such as advertising.
Primary Research Methods
Advanced Pricing Research Techniques
We do primary research using a variety of pricing methods such as conjoint analysis, Van Westendorp Price Sensitivity Meter, and others. Primary research is especially useful when setting prices for new products or when changing prices of existing products beyond their historical ranges.
Conjoint Analysis
Understand customer preferences and willingness to pay
Van Westendorp PSM
Identify optimal price points and acceptable ranges
New Product Pricing
Set optimal prices for product launches
Price Change
Navigate beyond historical pricing ranges
Choosing the Right Pricing Approach
Statistical Models
Best for:
- Existing products with price history
- Understanding past price impacts
- Incremental price adjustments
Primary Research
Best for:
- New product launches
- Major price repositioning
- Prices beyond historical ranges
Why Invest in Pricing?
Maximize Revenue
Extract the full value your products deserve from the market
Data-Driven Decisions
Replace guesswork with rigorous statistical analysis
Reduce Risk
Test pricing strategies before full market implementation
Competitive Advantage
Outperform competitors with optimized pricing
Case Study: Incrementality Analysis
Cosmetic Product Pricing Optimization
We used incrementality analysis to determine how the inclusion of two different prices in an advertisement impacts the conversion from the advertisement of a cosmetic product. The two ads were identical except regarding the price of the product displayed in the advertisement.
Lower Price
Higher Price
Key Findings
Impact & Action Taken
The difference in the conversion rate was statistically and practically significant. Based on the findings, the company adjusted its advertising campaign to leverage the lower price point, resulting in substantially improved marketing performance.
Case Study: Healthcare Pricing Analysis
Discovering the Non-Linear Price-Sales Relationship
The Challenge
A company in the healthcare industry increased the prices of its products. Consequently, it became increasingly difficult to achieve the sales objectives. We hypothesized that the price increase has had a substantial negative impact on demand for the company's products.
The Analysis
We conducted analysis of the historical performance of sales and their relationship with prices while accounting for the impact of other important factors of sales such as traffic, conversion rate, ad spend, etc. We built a complex econometric model that showed that the price increase accounted for 2/3rds of the shortfall in sales.
Key Insight: Non-Linear Link
We established that the relationship between price and sales was not linear. Up to a certain point increasing prices contributed to an increase in sales, but there was a threshold after which the relationship reversed and increasing the prices caused sales to decline precipitously.
Below Threshold
Price increases boost sales
Optimal Point
Maximum sales achieved
Above Threshold
Sales decline sharply
Solution & Results
Based on the analysis, we proposed new prices. The proposed prices were tested in the marketplace and led to a significant increase in sales between 5% and 10% for the different products.
Ready to Optimize Your Pricing?
Let's discuss how strategic pricing can unlock hidden value in your business.
