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Latest Pricing Insights

Tariffs and Their Impact on Pricing Strategy in the US

Posted by PriceBeam on October 30, 2018

2018 has been a year where tariffs were a key topic in the news. The US government imposing tariffs on Chinese goods and the Chinese government doing the same to US goods had and will continue to have serious ramifications for businesses. Even though the first round of these tariffs were for steel and aluminium, consumers buy many products that contain steel or aluminium, which also drives the price up of ordinary consumer goods. Tariffs impact consumer goods the most and businesses are left with a tough decision to either hike the prices of their products or reduce their profit margins. This will result in a decline in retail volumes for many companies, with companies such as Pepsi and Coca-Cola having to raise prices for the consumer side in order to cope with the extra costs. Tariffs have seen the average cost of washing machines in the US jump by 17%.

These tariffs imposed by the Trump administration will impact two types of companies:

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Topics: tariffs, fmcg, price increase, PriceBeam Updates, Profit, Pricing Strategy, willingness to pay, international prices

Brexit and its Impact on Price Increases

Posted by PriceBeam on October 26, 2018

 

The 29th of March, 2019, the day the United Kingdom officially leaves the European Union, is fast approaching. It is important for businesses to know the impacts Brexit will have on pricing for their products and how they can prepare for post-Brexit. Food prices are expected to go up after Brexit and some have even encouraged the government to cut tariffs on international products. Adding to that, a "no-deal" Brexit could have huge consequences for businesses as they risk potentially going bust in the event of no trade deal being secured. Despite this, some companies can actually gain from Brexit if they know how to retain their customers when the prices will be impacted by Brexit and thus become out of sync with consumer/customer willingness to pay for certain goods.

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Topics: price increase, international prices, fmcg, globalization, PriceBeam Updates, willingness to pay, brexit, tariffs

Are Your Prices Ready for Global Tariff War?

Posted by PriceBeam on June 21, 2018

 

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Topics: international prices, price increase, willingness to pay

Differences in International Willingness-to-Pay: Why Local Insights Matter

Posted by PriceBeam on June 11, 2018
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Topics: international prices, price research, willingness to pay

Why Willingness-to-Pay is a Local Thing

Posted by PriceBeam on April 3, 2018

International willingness-to-pay

Value-based pricing requires data and insights. Without understanding what customers value, or are willing to pay, it very easily ends up being just a more sophisticated version of guesswork. Leading companies applying value-based pricing fully understand this. But there is still a trap when it comes to the willingness-to-pay data collected: because market research used to be expensive there could be a tendency to either skip some markets or generalising results from one key market to all other markets.

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Topics: pricing research, globalization, willingness to pay

7 Factors to Include in Your Dynamic Pricing Model When Pricing Perishable Goods

Posted by PriceBeam on March 20, 2018

Perishable goods exist in many forms and situations. There is of course food products that have an expiry date after which they should not be sold. But also event or sports tickets, airline tickets and many other types of businesses. They all have in common that after a certain date the product or service cannot be sold any longer.

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Topics: dynamic pricing, pricing research, willingness to pay

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

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

Can Sales People use Price Research in Negotiations?

Posted by PriceBeam on November 14, 2017

Price Research benefits the marketing team as well as the pricing department: they get insights into willingness-to-pay and can better determine the optimal price. But what about Sales? In a recent sales conversation we were asked if price research could be used when e.g. putting price increases through. The short answer is "Yes". The longer answer is it depends. (And the legal answer is: yes, but don't dictate resale prices).

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Topics: Pricing, willingness to pay, negotiation

10 Ways Price Research can Benefit Global Businesses

Posted by PriceBeam on November 13, 2017

 

When pricing internationally, pricing research can provide a firm platform for superior performance:

  1. Understand true differences in willingness-to-pay and don't fall into the trap of harmonizing prices across borders, just because it is easy.
  2. Understand global as well as local value drivers and adjust marketing messages accordingly. Don't do global marketing on Benefit A, if this benefit is only appreciated in Japan but not in Germany. 
  3. Base local pricing on true willingness-to-pay rather than gut feel.
  4. Force the pricing team getting closer to local markets and customers, by having to do pricing research in all (key) markets.
  5. Take the guesswork out of pricing: with price research you know he real market facts instead of guessing.
  6. Make price increases more successful by reflecting local specifics and willingness-to-pay insights, rather than one-size-fits-all price increases
  7. As exporters: understand customer dynamics and willingness-to-pay even in markets around the globe and without a large local market team in place.
  8. Use price research and willingness-to-pay insights as proxies for brand health, and adjust marketing spend levels accordingly.
  9. Make global or regional product launches more successful by understanding willingness-to-pay in each market ahead of launch.
  10. Use local willingness-to-pay insights to better negotiate with international customers who are looking to harmonize prices across countries.

Shameless self-promotion: at PriceBeam we specialize in pricing research and provide insights in over 70 countries world-wide. Get in contact or even sign up for a free trial of our powerful price research solution.

 

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Topics: Pricing, globalization, willingness to pay