Pricing

A complex problem which demands experience: establishing a price is one of the most important decisions for the success of a product. Pricing strategies demand more than insight.

There is no optimal method for each decision on price. The more complex the problem, the more the decision has to be safeguarded by various questions.

There is also no price which is optimal from all points of view. A price only ever becomes optimal with regard to the aim. Depending on product life cycle and market strategy different price strategic options are produced.

You want to introduce a new product? Then you must make it clear which strategies are best suited to the product and its brand image, how important the price is in the decision to purchase and what role the price plays as an indicator of quality.

You want to review an established product? Then you must make it clear, what opinions on price and quality are "known" and what scope exists for the price. The Psyma PRICEfinder acts on this by taking the following steps:

Preliminary Steps: Price Climate and Brand Loyalty

• What role does the price play in the market?
• What is the price climate of the market like?

Pricing Know-How and Price Image

• Is your communication of price successful?
• What does your image on price and quality look like?
• What image are you able to communicate?
• Where does the competition lie?
• What gaps are you able to fill?

Price Agreement

• What scope do you have regarding price?
• What value does your brand have, can price reductions be justified?
• Price-performance trade-off
• Optimizing of a performance profile including competition and cannibalism
• Optimizing of pricing components