Successfully Implementing Price Increases

This time of the year, many managers from financial director to marketing to the pricing team work on next year’s price increases, or if they don’t, they really should. Best practice pricing involves continuously adjusting prices (upwards), of course to match customer willingness-to-pay, but also to avoid losing profits in real-terms after inflation. 

But even when determined about making a price increase, sometimes the outcome is far from successful. This can be because customers don’t agree with the value delivered. Or lack of discount control within your own sales team or the targeting of the wrong customer segments or too much focus on prices and costs, and not enough value communications. The reasons can be many, but thankfully with science and solid revenue management principles the likelihood of success can be increased considerably. 

CHHMA partner company PriceBeam has therefore compiled a list of more than 30 good ideas for how to successfully implement a price increase.

Hopefully, the ideas can also help you. With their global readership they would also very much like to hear from you about your ideas and experience within the field of price increase implementation. You can send them a message at www.pricebeam.com/contact. 

Assortment Optimization & Willingness-to-Pay
How many products should there be in an assortment, and how should they be priced individually? Does adding more products change the dynamics or psychology of customer choice? Or are there too many products that neither the customers nor the production department really can cope with?

This is a challenge in many industries. Classically, consumer goods manufacturers go through an assortment optimization (read: reduction of number of products) every few years as they also add many new innovations. But all kinds of other industries have similar challenges: how many car models to offer? What kind of software packages / plans should a Software-as-a-Service vendor offer?

To answer some of these questions, PriceBeam are very excited to be launching their Assortment Optimization Lab. 

This new market research type allows companies to test different assortment options and prices. You can define different scenarios and test customer or consumer choice between different options. The outcome is quantitative market insights into customer preferences, default / first choices, optimal range composition and roles for each product to play. It can also be used to assess customer impact of reduction in number of SKUs.

Similar to all their other research types, PriceBeam Assortment Optimization Lab is available in 109 countries and results are available online on our cloud platform in as little as 48 hours.

PriceBeam Promotional Lab – Optimizing Promotional Mechanisms & Discounts
In a few industries the price is just that: the price. No negotiation or discounts. But both in consumer goods and B2B the vastly prevalent pricing approach is to give discounts, rebates, price-offs, etc. very often to the tune of millions if not billions of Dollars/Pounds/Euros every year. 

Some businesses try to optimize the promotional mechanisms by analyzing the results after the promotion. This certainly can help with understanding what has worked in the past, but the promotional millions have already been spent. So what if you could predict the outcome in advance. 

PriceBeam has for years helped with basic promotional impact assessment through their predictive demand curves.

The curves show predicted demand, revenue and margin and various price points, and includes price elasticity and reactions to price changes. 

But now they are taking promotional optimization one step further with the launch of PriceBeam Promotion & Discount Optimization Lab. 

With this new tool, companies can test different promotional discount options before committing the spend in the market place. It can potentially save millions of dollars, or alternatively direct the promotional funds to be spent much more effectively than before.

PriceBeam Global Pricing Study
Pricing is a constantly evolving discipline and at PriceBeam they seek to always follow and understand what companies do in the pricing area. Therefore, they have recently launched a global pricing study, asking businesses around the world about their approaches to various pricing functions. 

If you can spare 10 minutes to answer the questions, they would very much appreciate your help. All respondents will receive a summary report of the findings, once the study is complete.

Get Quick and Actionable Pricing Insights: Try PriceBeam for Free
Have you wondered how much or little effort it takes to run a research project on customers’ willingness-to-pay? PriceBeam have now made it very easy. With a free 30-day trial, you can set up your own project, without any risk or commitment. Sign up for a free 30-60 minute demo.

After the demo they will set up the trial account. A demo or free trial will show you that a project can literally be set up in maybe 20-30 minutes, and requires neither statistical knowledge nor pricing expertise. PriceBeam takes care of all the practicalities and makes it easy and affordable to KNOW what customers are willing to pay.

About PriceBeam
PriceBeam brings decades of pricing experience and know-how to customers who want to take the guesswork out of pricing. The company is all about helping companies improve on their pricing by taking the guesswork out of what the prices should be. They scientifically survey and analyze customers’ willingness to pay and use this to offer insights as well suggested actions for how to price.

From the outset PriceBeam has been created as a global enterprise with representation around the world. PriceBeam provides market research about customers’ willingness-to-pay in 109 countries. The team boasts experienced pricing industry veterans with decades of experiencing in helping companies around the world manage and optimize their prices and price structures.

PriceBeam offers superior, cost-efficient and fast pricing research to a variety of industries, including consumer goods, consumer services, startups and entrepreneurs and investors.

CHHMA Discount
CHHMA members are eligible for a 10% discount off regular PriceBeam pricing, so when contacting them be sure to mention that you are a member company.

For more information on their services and pricing, please contact:
Chris Clement
V.P. Sales for North America
PriceBeam Ltd (www.pricebeam.com)

San Francisco – Boston – Toronto – London
Cell: 647-673-3536
Email: chris.clement@pricebeam.com

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