PRICE FOR PROFIT
“It was a delight and an eyeopener working with Shailendra. His structured and detail-oriented approach brought out each and every aspect important for the correct pricing of our CatalystQMS and CatalystERP products. This has ensured that I am not only getting more customers but getting them at a price which is right for them as well as for my company.”
Nikhil Dalal, Co-founder at Piton Systems, #AdvancedERP, #QMS, #AI platforms
A ‘startup’ is a company that is confused about
1. What its product is.
2. Who its customers are.
3. How to make money.
– Dave McClure, 500Startups co-founder
Pricing power is the single most important decision in evaluating a business.
- Warren Buffett, Chairman, and CEO of Berkshire Hathaway
Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs.
– Phillip Kotler, “father of modern marketing”
A good pricing decision is one that is made deliberately and thoughtfully, considers all relevant factors—costs, customer value, reference prices, and the value proposition, is based on the company’s business philosophy & values, and is explained clearly to customers and to employees.
– Utpal Dholakia, Professor of Marketing at the Jones Graduate School of Business, Rice University
A study involving 2,463 companies showed that a 1% improvement in price yields an average boost to profits of 11%, trumping both sales volume increase and reduction of fixed or variable costs in terms of impact on profit.
Most entrepreneurs focus more on selling more and reducing costs while ignoring the pricing. How you price your products, services, and bids has a significant impact on all significant strategic decisions, including product design, marketing, customer acquisition, selling, revenues, costs, profitability, taxes, funding, investing, cash flows, ROI, and business valuation.
We help entrepreneurs and business owners resolve these challenges in multiple ways.
Target customer micro-segments to capture maximum market
Create product variants to cater to customer micro-segments
Build a product funnel to leverage trust, risk, and time variables
Leverage modern pricing strategies like pay-per-use and value-driven pricing
Price to optimize profits across the channels
Reduce the cost of customer acquisition while maximizing customer lifetime value
Build pricing models for improved decisions and analytics
The entrepreneurs and business owners benefit from our experience in many ways.
Leverage Diderot effect to cross-sell and up-sell for higher wallet share
Reduce Order to Cash cycle time for accelerated cash flows
Increase profitability while growing sales
Build customer loyalty through value-driven pricing
Pro-actively manage as well as respond to the competitors’ pricing strategies
Significantly improve positioning and brand value
If you are an entrepreneur or a business owner, who is experiencing lower profitability, shrinking market share, or strained cash flows. do get in touch with us to know how we can help you.
The moment you make a mistake in pricing, you're eating into your reputation or your profits.
― Katharine Paine, founder, and CEO of KDPaine & Partners LLC
The impact of the price is always greater than that of the other three profit drivers, i.e., sales volume, fixed costs, and variable costs.
― E J Bouter, author of “Pricing – The third business skill”