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MARGIN OPTIMISATION
Generate immediate earnings improvments using advanced pricing optimisation techniques across your product range, service offer or across your contract and customer portfolio
MARGIN OPTIMISATION USING VALUE BASED PRICING
Pricing Insight's (2010) reports show that the majority of Australian businesses continue to use cost plus techniques as the primary method of setting prices. Cost plus pricing fails to optimise prices as it overlooks the true value customers are willing to pay for goods and services. It causes prices to be either too high (resulting in volume loss) or too low (resulting in lost margin), failing to capture the full economic value of your business' offer
Value Based Pricing strategies will define, communicate and capture the total value of your offer to the right market segments. Implementing Value Based strategies will protect and grow your business' margins in today's highly contested markets
Pricing Insight's margin optimisation process involves a forensic analysis of each product's value profile, customer segments and competitors. This has enabled us to generate between 2.0-9.0% points of incremental margin growth for our clients
THE OPTIMISATION PROCESS
Overcome Margin
Erosion in Highly
Contested Markets
| - Evolve from Cost Plus to Value Based Pricing
- Capture the full economic worth of your product by maximising
your customer profitability based on a Total Economic Value Analysis
- Achieve price premiums by understanding your customer's
willingness and capacity to pay for your products and services
| Optimise your
Margins at SKU Level
| - Understand your product's value at a stock keeping unit level,
relative to your competitor's price points and other analytical factors
such as price elasticity and quote to win ratios
- Map out this value for each product and customer segment by
identifying their 'value-in-use' and 'value-at-risk' profiles
- Identify all of your products' optimal price points (and discount levels)
to drive incremental margin |
Achieve between
2.0-9.0% points of
Incremental Margin
| - Pricing Insight has implemented margin optimisation programs for
ASX and Fortune 500 companies. This has resulted in a
2.0-9.0% points of margin growth without volume loss
- Implement margin enhancement projects using our risk-free pricing pilot
programs to generate incremental margin earnings in your business |
To evaluate how Pricing Insight can drive incremental gross margin in your business, please contact us on:
+61 2 9091 0226
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