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.

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.

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.

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.