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Latest Pricing Insights

Are Your Customers Willing to Pay More?

Posted by PriceBeam on April 4, 2018

 

Take the Guesswork out of Pricing

Do you have the right price for existing products or services? Do you know what the price should be for a new product yet to be launched? Are your customers willing to pay more for a given set of benefits? If you measure willingness-to-pay scientifically you will be able to answer all of those questions. Yet, still 88% of all companies admit that their pricing process is at least in part based on guesswork, without knowing what customers value and how much they are willing to pay for an overall product, or for a given set of features.

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Topics: value-based pricing, price research, price increase, pricing research

Knowing the Willingness-to-Pay of your Competitor's Customers

Posted by PriceBeam on March 16, 2018

Are your prices based on costs? Or a process of adding X% on last year's price? Or do you price based on what the nearest competitor is charging? Well, then of course you are in need of upgrading your overall pricing approach to value-based pricing, where prices are set based on the value you create. Often the value-based pricing strategy is supported by data and research about your customers willingness-to-pay. If you know what a customer is willing to pay, and what features she values, then value creation and value capture is much more accurate.

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Topics: price research, price communication, price positioning

Still Time to Sign Up: Webinar about Supporting Value-Based Pricing Strategies with Pricing Research

Posted by PriceBeam on February 22, 2018

On Monday the 26th, our co-founder Finn Helmo Hansen is conducting a webinar about how to use price research when establishing, implementing and maintaining a value-based pricing strategy. 

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Topics: value-based pricing, price research, pricing research

PriceBeam is growing: Getting scientific pricing insights in 109 countries

Posted by PriceBeam on February 22, 2018

We are excited to announce that PriceBeam's pricing research is now available for 109 different countries around the world:

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Topics: globalization, price research, ecommerce, pricing research

5 Steps to Getting a Better Price for a New Product

Posted by Finn Helmo on February 21, 2018

Launching a new product, whether you are in a startup or a well-established corporate environment, can be a daunting task. Everything from product development to marketing materials, sales training, customer communication and pricing comes in play. One of the biggest determinators of success is getting pricing right: price too low and the profitability is broken, plus it is almost impossible to later increase the price (substantially). Launch at too high a price and you may not sell enough to get off the ground.

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Topics: new product pricing, globalization, price research, price communication, pricing research

Webinar on 26 February 2018 - Getting Value-Based Pricing Right with Price Research

Posted by PriceBeam on February 9, 2018

We are excited to announce a new webinar about how to use price research when establishing, implementing and maintaining a value-based pricing strategy. 

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Topics: value-based pricing, price research

6 Ways to Improve International Market Launches Through Pricing

Posted by PriceBeam on January 29, 2018

Barriers to entry and the difficulty of doing business abroad have reduced considerably over the last two decades, thanks to technologies such as the Internet. This means it is much easier to do business around the globe but also that brand and product communication is increasingly global. Customers or consumers in Germany can now see product features, prices and discounts offered in USA or Singapore, and may create bad publicity if they feel that what they pay for locally is not of the same value. International prices are also considerably more transparent than ever before. On the other hand, both willingness-to-pay and actual prices do differ considerably around the globe, be it of similar of even identical products. What an Indian or Brazilian customer is willing to pay for Product A may not be the same. Or, a German customer may value Feature B over Feature A whereas the Canadian or Danish customer really only cares about Feature B and maybe Feature C that is not even available in Germany.

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Topics: Pricing, willingness to pay, new product pricing, globalization, price research, price communication, international prices

5 Ways Price Research can Help with New Product Pricing

Posted by PriceBeam on January 26, 2018

Launching new products or services can be a daunting task. With everything from product development, marketing, sales training, customer communication, as well setting the price. Price research can help in various ways with these challenges.

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Topics: Value Proposition, willingness to pay, new product pricing, conjoint analysis, value-based pricing, price research, price communication

Enhancing Dynamic Pricing with Market Insights

Posted by PriceBeam on December 15, 2017

Dynamic pricing is all the rage among pricing experts these days. It looks at building models for adjusting prices dynamically, based on various inputs, from who the customer is, to their purchase patterns, market conditions and a wealth of other factors. Dynamic pricing has been used a long time in the travel industry, e.g. when the airline fare goes up or down depending on demand, from where people are booking, availability and popularity, and much more. 

Dynamic pricing is very powerful as it allows companies to set the (right) price depending on demand or internal constraints. It also in theory allows for adjusting to differences in willingness-to-pay, even if this is a grey area in the jurisdictions where price discrimination (different prices to different customers for no objective reason) is not permitted. Dynamic pricing means you can adapt quickly to differences in stock, or scarce capacity of certain resources. It also allows for quickly updating prices if costs change so much that profitability would otherwise be in jeopardy.

Dynamic models in their simplest form, basically take a starting point and then add various factors, either internal or external, and then arrive at the final price for the given situation/quote/customer/website update/etc.

Having solid market research about willingness-to-pay can enhance dynamic pricing models. Willingness-to-pay data, especially when collected for different segments, and both own products and competitive products, can help enhance the dynamic pricing. WtP data can be one or more factors in a model like the one above, and therefore have an impact on what the final price is for a specific segment, or for a specific concept that previously has been tested through market research.

But wait, if dynamic prices mean new prices all the time, do I also need to conduct market research all the time too? No, is the short answer. Factors in a dynamic pricing model often stay constant for weeks or months. So in practical terms you can still use market research willingness-to-pay insights that was done 6 or 12 months ago, and still achieve great results. Generally, we recommend updating WtP insights at least once a year.

If you want to learn more about how you can build a dynamic pricing model and use market research insights to make it more accurate, get in contact with us.

 

 

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Topics: Pricing, price research, ecommerce

Price Communication: Convince Using Price Research

Posted by PriceBeam on December 11, 2017

Communication is key in any comprehensive price management setup. Price and Value Communication is how you communicate with the customers, and communication and training is what makes the difference between convinced sales people, who deliver value conviction to the customers, and sales people who are indifferent and not able to defend the company's prices.

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Topics: Pricing, price research, price communication