Price Increase Management
Most pricing errors are prices that are set too low, and thus, a price increase can be great for profits if done right.
A price increase can be tough on some customers, however, and should not be done too often. Therefore, it is important that you get it right the first time, and set a new price you will not need to increase again in the near future. However, there is a fine line that needs to be found as if the new price is too high, customers will leave for a competitor.
To find this line, willingness to pay research is of the essence. It can show you with tremendous accuracy where it is, and more importantly, show you the pain points to watch out for. These pain points are also referred to as price walls: a particular point where even a tiny price change will have a disproportionate large impact on sales. You want your price to be increased to a point where profit is maximized, but you do not hit a price wall.
What We Do
PriceBeam enables managers to carry out their own pricing research, using our simple cloud solution. Our software will both collect and analyze customer data about your chosen segment, and create a willingness to pay curve that shows both what will maximize profits, and where the aforementioned price walls are.