Price Optimisation Strategy

Pricing Audit and Diagnostic

• Current State Analysis: Comprehensive review of existing price points, discounts, and promotional strategies.

• Profitability Leakage Assessment: Identifying areas where revenue is being lost due to inefficient pricing, discounting, or cost-to-serve mismatches.

• Competitive Price Benchmarking: Detailed comparison of your prices against key competitors for similar offerings and value segments.

• Customer Segmentation by Price Sensitivity: Analysing historical data to group customers based on how responsive they are to price changes.

Pricing Model and Architecture Design

• Monetisation Strategy: Recommending the optimal way to capture revenue (e.g., subscription, usage-based, freemium, one-time purchase).

• Discounting Strategy and Governance: Establishing clear rules, limits, and justification processes for applying discounts to protect margin integrity.

• Channel Pricing Optimisation: Defining differential pricing strategies for various sales channels (direct sales, resellers, partners).

• Add-on and Feature Pricing: Determining the pricing for optional features, upgrades, and premium support services.

Value-Based Pricing Strategy

• Value Quantification and Modeling: Developing methodologies to measure the economic benefit (ROI, cost savings) your product provides to the customer.

• Perceived Value Assessment: Conducting market research (e.g., surveys, conjoint analysis) to understand customer perceptions of value.

• Value Metric Definition: Identifying the unit of measure that captures the value consumed (e.g., per user, per transaction, usage tiers).

• Tiered Pricing Structure Design: Developing logical and differentiated pricing tiers (e.g., Basic, Pro, Enterprise) to capture varying segments of the market.

Implementation and Testing

• Change Management and Internal Training: Preparing sales, marketing, and customer service teams to communicate and execute the new pricing.

• A/B Testing and Price Experimentation: Designing controlled tests to measure the impact of price changes on demand and profitability before a full rollout.

• Pricing Implementation Roadmap: A phased plan for rolling out pricing changes, including timelines and required systems updates.

• Performance Monitoring & Optimisation: Setting up real-time dashboards to track key pricing KPIs (e.g., average selling price, margin, win rate) and continuously adjust based on performance.