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Latest Pricing Insights

Patterns in Willingness-to-Pay - Quantitative Research Insights

Posted by PriceBeam on October 1, 2019

How do customers react when presented with different prices? How does their willingness-to-pay vary by segment or country, or how does it change over time, either organically or when subjected to stimuli? PriceBeam runs many studies around the world and we have collected some of the general insights and trends from willingness-to-pay studies in 2019.

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Topics: Pricing, willingness to pay, globalization, price research, market research

Managing International Price Differences (and why it is a good thing)

Posted by PriceBeam on September 2, 2019

Prices are almost never the same in international markets. They vary due to taxes, cost structures, local market needs, currency exchange rates, tariffs, differences in competitive situations and a myriad of other reasons. They even vary because this is the way it has always been. If looking at different industries, consumer products (CPG/FMCG) have more than 100% difference in prices, with even regional differences in e.g. the European Union of up to 50% for the same product. Car manufacturers are well-known for their price differences and even relatively global products such as computer software has had a number of bad PR cases where e.g. Australians would pay twice as much for Adobe software as US customers.

But international price differences are more good than bad. Here is why.

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Topics: Pricing Strategy, willingness to pay, price optimization, international pricing, market research

Advances in Price Optimization Through Measurement of Willingness-to-Pay

Posted by PriceBeam on June 3, 2019

Price Optimization is Moving from Guesswork to Science-backed Insights

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Topics: Marketing, Pricing Psychology, willingness to pay, price research, price positioning

International Price Differences: The Good, the Bad and the Ugly

Posted by PriceBeam on April 5, 2019

Prices should differ across different countries, but companies must not only reap the benefits (The Good) but also manage the costs (The Bad) and avoid the pitfalls (The Ugly)

Prices are almost never the same in international markets. They vary due to taxes, cost structures, local market needs, currency exchange rates, tariffs, differences in competitive situations and a myriad of other reasons. They even vary because this is the way it has always been. If looking at different industries, consumer products (CPG/FMCG) have more than 100% difference in prices, with even regional differences in e.g. the European Union of up to 50% for the same product. Car manufacturers are well-known for their price differences and even relatively global products such as computer software has had a number of bad PR cases where e.g. Australians would pay twice as much for Adobe software as US customers.

But international price differences are more good than bad. Here is why.

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Topics: Pricing Strategy, willingness to pay, international prices, international pricing

10 Reasons Why Start-Ups and Scale-Ups Should Understand their Customers' Willingness-to-Pay

Posted by PriceBeam on March 15, 2019

Being a founder or senior manager in a start-up involves a very diverse set of projects, tasks and challenges. Anything from big strategic thinking over sales, marketing, HR, technology, admin and myriads of other things. So it can sometimes be easy to overlook pricing, even if price is one of the most important decision areas to focus on as a start-up or scale-up. Here are 10 reasons why:

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Topics: willingness to pay, start-up, price setting, scale-up

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

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

Are Your Prices Ready for Global Tariff War?

Posted by PriceBeam on June 21, 2018

 

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Topics: willingness to pay, price increase, international prices

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

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

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: willingness to pay, globalization, pricing research