Pricing Strategy

You don’t have a pricing strategy?

You are not alone!

In most companies, pricing is thrashed out by the Purchasing, Marketing and Sales departments, and with an eye to competitors’ prices – or it can just be down to gut feeling. The customer is ignored: a fatal error, because that means cash is slipping through your fingers.

Pricing Strategy

You don’t have a pricing strategy?

You are not alone!

Our customers

Price level

The price is often not the issue

Customers rarely make decisions based on price alone. Most of the time, they do not even know the price of a product they have just bought. And certainly not the prices of competing products. Much more critical criteria are often whether the product is suitable for the planned usage and whether they are treated fairly.

Price structure

One price, many elements

For many products, the key to a successful pricing strategy lies in skilfully splitting the total price into different price elements such as the basic package, additional features, and equipment packages. This is because customers often use only one component as a price marker, while higher prices for other elements don’t influence their decision.

Price differentiation

Different customers - different prices

Different customers will accept different prices. This means that you should strategically differentiate prices between customers. Otherwise, you are giving away margin or conversion rate. The high art of pricing is deciding which dimensions can and should be differentiated, how price segments should be delineated, and how long-term migration paths ought to be structured.

Price dynamics

No unjustified discounts

Discounts undeniably boost sales in the shorter term. The consequences of discounts for the future price acceptance of customers are often overlooked. Discounts can make sense if they’re offered for the right reasons and are aimed at specific customer types, but any discount must form part of a comprehensive pricing strategy – otherwise you’ll rapidly end up in an unnecessary price war.

Price communication

Take care when you talk about prices

What your customers perceive as “too expensive” or “too cheap” very much depends on your price communication. We support you in framing your products (GRIPS typology), and show you how an improved communication strategy can help you to enforce the prices that are optimal for your company.

“If you think that setting the price level is the same as having a pricing strategy, you’ll automatically enter a ruinous price war.”

Prof. Dr. Florian Bauer

Member of the Executive Board
Vocatus AG

The secret of our success?

Behavioral Economics

Rational customers and other myths

“Prices are based on production costs.”

“The customer knows the price and wants as much as possible for his money.”

“Discounts boost business.”

Or maybe not?

We clear up the biggest mistakes and myths in pricing. 

So you’ll stop giving away margin.

“Their extensive international experience and their expertise in the subject was outstanding. During the joint work they did a great job to optimize sales efficiency, product analysis and pricing.”

Katalin Ákoshegyi

Head of Sales
Posta Biztosító Ungarn

Our customers speak for us

“…absolute specialists…”

“It was clear from the very beginning that Vocatus consultants were absolute specialists when it comes to price optimization and deducing a conclusive pricing strategy.”

Elisabeth Varn

Management 

Burda

“…receive more orders while enforcing better prices…”

“Various workshops, as well as coaching and e-learning sessions, enabled us to optimally align our offer and pricing with the customers’ decision-making motives. ”

Thomas Beck

Managing Director

Würth Elektronik GmbH & Co. KG

“…clear understanding what truly drives purchase decisions…”

„With a clear understanding of what truly drives purchase decisions, their recommendations were concise, actionable and well accepted throughout the organization.”

Dirk Reznik

CEO

Thermomix

Pricing Strategy

You don’t have a pricing strategy?

You are not alone!

Our customers

Price level

The price is often not the issue

Price structure

One price, many elements

Price differentiation

Different customers - different prices

Price dynamics

No unjustified discounts

Price communication

Take care when you talk about prices

Prof. Dr. Florian Bauer

The secret of our success?

Behavioral Economics

30% fewer cancellations

29% fewer discounts

60 million savings in costs

Rational customers and other myths

Katalin Ákoshegyi

Our customers speak for us

“…absolute specialists…”

“…receive more orders while enforcing better prices…”

“…clear understanding what truly drives purchase decisions…”