Pricing Strategy

Pricing gets overlooked most of the times and it is one of the most important and underutilized levers. A price strategy can not only help identify how many customers are needed to reach revenue goals, but it is also linked to churn rates. When looking deeper one can identify revenue channels available to acquire new customers. A pricing structure should be reviewed at least once a year. Pricing deserves the same attention as other areas of the business, since pricing is linked to your brand which allows you to position your business on top of the competition.

Below are a couple of pricing strategies to consider:

Profit Growth – The goal is to maximize profit while optimizing cost and growing revenue (by identifying pricing and determine volume)

Revenue Growth – Increasing market share while growing revenue by focusing on long term profit margins.

Volume Growth – Growing volume (number of units sold or numbers of clients served) while decreasing pricing  

Premium Pricing – Position brand as high quality and charge premium prices 

Temporary Pricing – Temporary pricing adjustments when there is a decline in demand or overcapacity