Pricing is the most undervalued marketing tool for increasing profitability.

A deep understanding of the value structure of your company’s offering is crucial for designing the best price strategy.

Flowresulting offers the necessary insights and helps to develop a winning strategy.

Optimal pricing

Increasing the price by 1% often has more impact on profitability than a 1% volume increase or cost reduction. Yet most companies invest more time and money in marketing and cost-reduction programs than in developing their price competence. Most organizations react quickly to competitors’ price adjustments. Often this ignites a downward spiral in which prices continue to fall and margins evaporate.
Flowresulting answers questions such as:

  • Which sales volume will we achieve at what price?
  • Which price leads to profit maximization?
  • Are we perceived too cheap or too expensive in comparison to competitors?
  • What is the impact of competitors actions on our sales?

Proposition optimization

Fast and sustainable growth requires insights into the elements of the product or service that add value for the customer. Although this seems obvious, we estimate that 9 out of 10 companies don’t have the basics right in this respect. Main reason for this: value-based pricing is a quite complex area of expertise. Flowresulting makes value-based pricing easy. We have a proven track record of significantly increasing profitability in various sectors both in the Netherlands and in international context.
 We help you to answer these questions for your company:

  • What are customers willing to pay for specific product/service features?
  • Which features should new proposition offer to  facilitate successful market introduction, and at what price?
  • Is it possible to improve profitability by lowering quality or service levels (taking the value out)?
  • What benefits should be highlighted in marketing communication?

 

 

 

Assortment design

Smart assortment design makes buying easy, preventing choice stress for customers. While at the same time optimizing gross margin by levering differences in willingness to pay between various market segments. In practice we find that this not necessarily implies extending the assortment. Often it is possible to simplify the assortment without giving in on the customers experience of an optimal fit between his demands and the offering.
Flowresulting provides answers to questions such as:

  • What is the revenue impact of assortment simplifications or extensions?
  • What is the optimal freedom of choice for customers?
  • How do we stimulate cross- and upsell through use of psychological mechanisms?

Intelligent promotions

For different reasons a company can end up in circumstances that make price promotions unavoidable. We see lot of companies using gifts and discounts without understanding the psychology involved and/or tracking its effectiveness. Companies can realize a huge increase in price promotion effectiveness by doing their homework in advance.
Flowresulting provides answers to questions such as:

  • Which promotions are effective for retention? Which for acquisition?
  • How deep should a price promotion to realize optimal results?
  • How can we individualize price promotions by applying big data?
  • How can use of psychological mechanisms increase effectiveness of price promotions?