In certain categories, pressure on pricing has never been so intense for B2B and B2C companies, driven by the development of manufacturing in low-cost countries, the rapid penetration rate of private label, the appetite of customers for low-cost offers, competitive promotional wars or the increased transparency on prices thanks to online search tools. In other categories, high prices are a key driver of demand as they signal quality, know-how, durability, rarity and status.
Price is therefore a key dimension of the value proposition but is also a critical lever to improve profits. Yet, it is often overlooked, used as a brutal tool to increase short-term profits to compensate for falling sales, or not used in the most impactful way: too low, you risk leaving money on the table – too high: you risk stifling growth and inviting competitors.
Thanks to its extensive experience in defining pricing strategies and schemes, Emerton can help its clients leverage pricing as a differentiating element of their value proposition and, if relevant, challenge the status quo by implementing proven best practices used in other sectors.