The Challenge
Most companies set prices based on costs, competitors or gut feeling. The problem? Price is perception, context and thresholds, not a simple function of cost plus margin.
Who is it for?
CMOs, commercial directors and category managers who need to make informed pricing decisions.
Our approach
We start from the top, not the bottom. Instead of optimizing individual price margins, we first understand the full price landscape: how customers perceive price in the category, where the thresholds lie, what drives acceptance versus resistance. We combine monadic price measurements with observed transaction data to calibrate demand elasticity against reality. When trade-offs need quantifying, we use conjoint analysis with HB estimation at individual level and MaxDiff to identify which product attributes drive willingness to pay. TURF optimization complements with the assortment perspective.
Deliverables
- Interactive price simulator with demand curves
- optimized price points per segment
- revenue impact projections per SKU
- price acceptance analysis with thresholds and barriers
- context-based price simulation calibrated against actual sales data
- TURF-optimized assortment
- scenario modeling with economic impact analysis.
Related reading
Read more about the methods and perspectives behind our work.