PRODUCT STUDIES–Pricing Research
Pricing research is used to answer one simple question; are you charging the right price? Many companies do not charge the price where they maximize revenues or profits. Therefore, they leave money on the table or lose revenue at every transaction. Both errors are significant because it directly impacts your bottom line.
Our analysts can provide you with the tools to determine the best pricing strategy for your product. You may find that you have room to increase your price without sacrificing market share.
- What is the price/volume relationship for our product?
- At what level do we maximize revenues?
- Can we afford to raise the price?
- At what price do we maximize profits?
- Will price increases sacrifice market share?
Savitz Success Story
A national food manufacturer believed its product was superior to the competition. As a result they charged a premium for their brand. However, research indicated the less expensive brand had a large share of the market. The SRS pricing model was used to show the client that they should be pricing at parity with the competition. After 6 months of doing so, they became the market leaders with much healthier profits.