The power of pricing

How to make an impact on the bottom line

The majority of companies already recognise the potential for achieving growth through improved pricing. Understanding their customers and being able to react to them is often what drives pricing, yet in reality a very small proportion (13%) have an in-depth understanding of what their customers value and what they’re willing to pay. This may be because using customer values is arguably one of the most complex ways of setting prices and companies are often nervous about changing prices in a way that could have a negative impact on customer behaviour. It is perhaps for this reason that we see that 60% of respondents use simpler methodologies such as cost mark-up or matching competitors.

Implementing a great pricing strategy can be complex and involves excellence in all aspects of pricing. But a clear strategy can make companies more profitable now and in the future.


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