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A proper pricing decision will ensure a successful product launch, optimize revenue and profit, and send the right message about your brand. Pricing should be based on solid science. Rockbridge pricing studies can answer critical questions, including:

  • How does price impact market share?
  • Going beyond market share, what prices will optimize revenue and profit?
  • How do we account for competition? Cannibalization by our own products?
  • What is the trade-off between various price elements, like up-front costs, monthly charges, replacement parts, etc.?
  • What message does price send to buyers about our product/service quality?
  • Rockbridge has extensive experience conducting rigorous pricing studies in surveys. These range from simple split sample designs to complex experiments that measure cross-elasticities. These often involve the use of discrete choice studies that model the impact of price among competing brands and products within the same product line. Ultimately, we provide our clients with the tools to simulate the impact of price on demand, revenue and profit.

    In some markets, buyers may actually use price as information, defying the law of “downward sloping demand.” Too cheap a price may actually drive away buyers. Rockbridge helps clients in these situations with Price Sensitivity Analysis ("Van Westendorp").

     
    Read whitepapers on Pricing.