Setting prices at the customer versus product level can shift behaviors in ways that benefit both the customer and the company
Product pricing is one of the most crucial decisions any business can make. The card arena faces dramatic change from competition and shifting industry dynamics. Charge too much and you’re likely to lose new business to competitors. Charge too little and you will only realize sub-par returns. Finding the right price point is a complex and challenging process, especially when factoring in how different segments value products and services.
Of course, pricing at the product level treats everyone equally. You can realize higher returns by customizing pricing to each customer. To justify the required investments in people and processes you need a sizable portfolio. But the returns can be well worth it.
Think Execution While Considering Your Options
Our approach to pricing strategies combines strong analytics with broad-based testing to determine optimal price points. We integrate price testing with our understanding of customer behavior by segment and a thorough knowledge of the product profit model (especially cost structures and key cost drivers). Also, we track competitor pricing actions carefully to ensure that pricing remains competitive in the marketplace.
Contact CDG Now To Assess Your Pricing Strategy And Opportunities