Price Sensitivity Analysis

Define the optimal price for your customer and your business

The Business Challenge
At what should I price my product or service? If only the question were so easy. A sound pricing strategy drives a successful product launch, optimizes revenue and profit, and sends the right message about your brand; though often times, the approach to determining an offering’s pricing potential may be determined more from a financial perspective than your customer’s perspective. It becomes an inward looking view vs. an outward one.

Our Belief

At Rockbridge, determining the optimal price starts with understanding the context around your product or service.  In particular, it’s evaluating how your pricing impacts your offering’s overall perception and positioning in the marketplace, because sometimes, the only way to gauge your product or service’s quality is through the price you offer.

Our Solution

We conduct Price Sensitivity Analysis to help you identify thresholds to help you make the most informed decisions.

How it’s Different

Our approach is based on the assumption that customers will judge the quality of your offering based on price, especially in environments where the decision-making process is not straight-forward.

We model and simulate many scenarios to help you identify the best prices to use.  If there is a desire to create a bargain product, we can also determine when prices are so low that it creates doubt in your customers’ minds.  Conversely, if you offer a premium product, we can assess when prices are so high that potential customers are excluded.

Benefit of the Approach

With our Price Sensitivity Analysis, you can more effectively determine:

  • How to best position and message your product or service based on the perception it sends to buyers about its quality
  • Identify minimum and maximum thresholds for pricing your product or service