Product Pricing Strategies

QDI's pricing strategy planning combines product-pricing research and channel pricing strategies to evaluate customer perception, channel behavior and market economics.

Smart pricing is the key to higher profits. Effective pricing extracts full value for a product, encourages bundling, induces large purchases, and minimizes negotiations. Unfortunately too many firms only look at competitors' prices when setting their own. Poorly designed pricing systems not only give away profit, but also discourage loyal customers.

QDI Strategies works with our clients to develop pricing structures and price points by:

• Understanding how pricing fits in the customer’s decision process for:
  • Sole-source customers
  • Dual-source customers
  • Competitive customers
• Defining and measuring the value of your offering
• Researching price point options
• Modeling alternative structures
  • Impact on profit
  • Impact on purchase behavior
  • Likely competitive response
• Monitoring the impact on share, sales force time and profit

QDI works with clients on two types of pricing problems.

• Product pricing to answer the questions:
  • “How much will I sell at X price?”
  • What is the maximum price I can set and still hit my volume targets?
  • How will the market react to my pricing?
• Channel pricing to answer the question:
  • What price structure should I use with my channels to maximize the effectiveness and efficiency of my marketing programs?
  • What types of price incentives should I offer?

QDI’s marketing consultants can help you develop a pricing strategy designed to optimize profitability and align with your overall business growth strategy.

For solutions to your Product Pricing Strategy challenges, contact Steve Bassill
or Mike Barr at QDI Strategies, Inc.

Steve Bassill -- 847-566-2020 Ext. 229

Mike Barr -- 847-566-2020 Ext. 225