--- title: "The Pricing Challenge: Tools vs. Guesswork" description: "Blog article: Learn how to optimize pricing strategies with PriceBeam's WtP studies for increased profitability and competitiveness." image: https://blog.pricebeam.com/hubfs/Blog%20-%20Size%20for%20not%20blurry%20images%20(24).png --- [Skip to content](https://blog.pricebeam.com/the-pricing-challenge-tools-vs.-guesswork#main-content) [![PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/lead-flow-images/PBLogoTransparent%20(1).png?width=400&height=100&name=PBLogoTransparent%20(1).png)](https://www.pricebeam.com/) - Solutions ![RGM360](https://blog.pricebeam.com/hs-fs/hubfs/RGM360_Headlines.png?width=319&height=255&name=RGM360_Headlines.png)[PriceBeam RGM360](https://www.pricebeam.com/rgm360) is an end-to-end Revenue Optimization Platform, offering unmatched value by integrating market research, internal data with AI and next-generation simulation and optimization tools. 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[Automotive](https://www.pricebeam.com/automotive-pricing) - [Auto Aftermarket](https://www.pricebeam.com/automotive-aftermarket-pricing) Pricing Challenges Solved - [Pricing New Products](https://www.pricebeam.com/pricing-new-products) - [Brand Health & Pricing](https://www.pricebeam.com/brand-health-pricing) - [M&A Pricing](https://www.pricebeam.com/mergers-and-acquisitions-pricing) - [Investment Portfolios & Pricing](https://www.pricebeam.com/portfolio-growth-pricing) - [Price Segmentation](https://www.pricebeam.com/price-segmentation) - [Sales Team & Pricing](https://www.pricebeam.com/sales-team-pricing) - [International Pricing](https://www.pricebeam.com/international-pricing) - [Navigating New Tariffs](https://www.pricebeam.com/tariffs) - [Price Optimization](https://www.pricebeam.com/price-optimization) - [Price Increases](https://www.pricebeam.com/price-increase-management) - [Pricing Strategy](https://www.pricebeam.com/pricing-strategy) - [Psychological Pricing](https://www.pricebeam.com/psychological-pricing) - 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[Newsletter](https://www.pricebeam.com/newsletter) - [RGM Pulse Survey 2026](https://www.pricebeam.com/rgm-pulse-survey-2026) - About - [Company](https://www.pricebeam.com/about) - [News & Events](https://www.pricebeam.com/news) - [Partners](https://www.pricebeam.com/partners) - [Press](https://www.pricebeam.com/press) - [Careers](https://www.pricebeam.com/careers) - [Contact](https://www.pricebeam.com/contact) ![Search icon](https://5018647.fs1.hubspotusercontent-na1.net/hubfs/5018647/Design/Icons/Font%20Awesome/search.svg) [All posts](https://blog.pricebeam.com/all) August 19, 2024 # The Pricing Challenge: Tools vs. Guesswork ![Picture of PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/Images/PBLogoBadge240x240.png?width=50&name=PBLogoBadge240x240.png)   PriceBeam  ·  1 minute read ![Blog - Size for not blurry images (24)](https://blog.pricebeam.com/hs-fs/hubfs/Blog%20-%20Size%20for%20not%20blurry%20images%20(24).png?width=1750&height=875&name=Blog%20-%20Size%20for%20not%20blurry%20images%20(24).png) Imagine two competitors: **A** and **B** Competitor **A** knows the willingness-to-pay of its consumers for the products (Optimum price at R$15 for the product and competitor’s one with optimum price at R$12). Competitor **B** does not know this information and simply follows Competitor A's prices with a **15%** discount. Product costs have increased by 10% and this seems like a good opportunity for **A** to increase its current price (R$13) by 15% to R$14.95 just before the price level of a sharp drop in demand. Competitor **B** with the original price of R$11.00 decides that it will repeat the percentage increase of its rival A and raise its price to R$12.65. But... What follows is a sudden drop in sales, leaving competitor B confused. They can't understand why their rival, after increasing prices by 15%, is selling more, while they, after doing the same, experienced a significant decline in sales—much worse than the 15% price increase. Below are some mistakes and doubts from competitor **B**: - Does not know the relative value perception of consumers for the products sold - Follows a constant and dumb price indexing vs. his main rival Qu: What should you do with a drop in sales? *a) Cancel the price increase and accept the 10% cost increase* *b) Reduce the price increase to 10%, maintaining the original margin and creating a price difference with competitor A of 20%, violating the 15% index in force for many years.* *c) Do nothing in the expectation that sales will recover subsequently?* Leave your answer in the comments! If you've ever felt like you're in competitor B's shoes, talk to PriceBeam and we'll make you feel like you're in competitor A's shoes 👞. How do we do this? PriceBeam provides a structured and effective method for conducting WtP studies, giving businesses the data and recommendations needed to optimize pricing strategies. By utilizing these insights, businesses can boost profitability, strengthen customer relationships, and maintain a competitive edge. [➡️](https://www.pricebeam.com/demo)[Book a demo and learn how you can be competitor A](https://www.pricebeam.com/demo) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.pricebeam.com/the-pricing-challenge-tools-vs.-guesswork) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.pricebeam.com/the-pricing-challenge-tools-vs.-guesswork) [twitter icon](https://twitter.com/intent/tweet?url=https://blog.pricebeam.com/the-pricing-challenge-tools-vs.-guesswork) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.pricebeam.com/the-pricing-challenge-tools-vs.-guesswork) [envelope icon](mailto:?body=https://blog.pricebeam.com/the-pricing-challenge-tools-vs.-guesswork) ## Related posts [![sign up.jpg](https://blog.pricebeam.com/hubfs/Images/Social%20Media%20Tag%20images/sign%20up.jpg)](https://blog.pricebeam.com/webinar-pricing-bundled-support-services) [Pricing](https://blog.pricebeam.com/topic/pricing) #### [Webinar: Pricing Bundled Support Services](https://blog.pricebeam.com/webinar-pricing-bundled-support-services) [![Hand drawing image of businessman. Business challenge](https://blog.pricebeam.com/hubfs/Stock%20images/Hand%20drawing%20image%20of%20businessman.%20Business%20challenge.jpeg)](https://blog.pricebeam.com/webinar-recording-setting-the-right-price-for-new-products-or-services) [innovation](https://blog.pricebeam.com/topic/innovation) #### [New webinar recording: Setting the Right Price for New Products or Services](https://blog.pricebeam.com/webinar-recording-setting-the-right-price-for-new-products-or-services) [![InternationalPricing.jpg](https://blog.pricebeam.com/hubfs/Images/InternationalPricing.jpg)](https://blog.pricebeam.com/6-ways-to-improve-international-market-launches-through-pricing) [Pricing](https://blog.pricebeam.com/topic/pricing) #### [6 Ways to Improve International Market Launches Through Pricing](https://blog.pricebeam.com/6-ways-to-improve-international-market-launches-through-pricing) **Pricing Right, Made Easy** Almost all companies struggle to price right. They use methods such as cost plus a fixed margin. They use guesses and gut feel. They peg their price to a competitor’s. They price themselves too low, leaving money on the table, or too high, forsaking sales volume. They lose out on the profits they should be earning. PriceBeam changes all that. With a methodology that is confirmed to be accurate in thousands of projects, PriceBeam provides AI-powered market insights software that generates actionable insights into consumers' willingness-to-pay, competitive price positioning, packaging and assortment dynamics, promotional benchmarking, and opportunities from new product pricing. 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