Pricing

Assumption-based pricing is not a strategy

Pricing is one of the most powerful drivers of profitability and brand value, yet many retail and D2C businesses default to constant discounting and assumption-based pricing instead of a customised, data-based pricing strategy. Some of the challenges we help our clients solve include:

• —How do we enable strategic pricing to increase our margins without sacrificing sales volume?
• —How do we incorporate a flexible pricing strategy that adjusts prices to different customer segments, instead of applying global discounts that cannibalise profitability?
• —How can we utilise pricing as a tool to lift brand value and perception?

How we help businesses develop and implement the right pricing strategy

Pricing challenges differ across all businesses, shaped by different products, customer bases, and market dynamics. Our approach is grounded in data from the first assessment onward, ensuring every recommendation is based on actual performance rather than assumption. Work we typically do with our clients includes:

1. 01Assessment of current price points and discount rates across products and categories, establishing a clear overview of how prices compare to competitors and the broader market.
2. 02Mapping customer buying behaviour across different product categories and customer segments, determining willingness to pay, and whether customers purchase your products at full price or primarily during campaign periods.
3. 03Designing a comprehensive pricing strategy at market, category, and product level, based on insights and data gathered from the prior steps.
4. 04Executing the recommended pricing strategy across the relevant products and customer segments, followed by ongoing performance measurement that tracks the impact on margins, sales volume, and discount dependency.

Deliverables shaped around your customers’ buying behaviour

Our work results in a clear set of outputs that turn pricing into a deliberate, actionable strategy. Here is what we deliver:

• A detailed as-is analysis covering current price points, discount rates, and customer buying behaviour across product categories, markets, and customer segments, establishing a fact-based foundation for pricing decisions.
• A comprehensive pricing strategy tailored to the client’s specific goals with regard to profitability and brand perception, containing the following two:
• A recommendation roadmap for adjusting base prices across product categories, outlining price changes over a timeline to manage the transition without disrupting current operations.
• An updated, data-driven campaign framework that defines when discounts should run, what discount rates to apply, and which customer segments and products they apply to.