What is the Optimal Price?

Acting on the price of products and services is one of the most controversial decisions in marketing. While increasing short-term sales is the norm, it is possible to end up with opposite results in the mid to long term.

It is a serious mistake to the same price policy to different types of customers. Profitability will suffer sooner or later.

Price is one of the factors that most influences sales variability of products and services. However, few companies know how to apply the appropriate policies to intelligently manage this parameter. Reducing prices does not always generate profits, and in the majority of cases, it is even a decision that culminates in a severe economic blow to the company if it does not know how to make the appropriate decisions.

Low-quality Customers?

Another of the undesired consequences of carrying out strategies of this type, in which a price reduction is the main means of obtaining customers, is attracting disloyal customers, who are attracted by the offer but do not see any other value in the company. Their life-cycle in the end is short, and they receive a much greater return from the company than the company can even make up the obtainment cost for.

Keys to Segmented and Personalized Price

1. THE VALUE of the customer and the Segment as the focus of the Price Policy. Pricing will only be optimal when it is based on the value of the customer. According to said value, it is possible to determine what offers, prices, and discounts should be made for each segment, offering them the price that is most appropriate for each of them.
2. MODELLING Price settings. We can help you discover what price models apply to each customer segment, in order to obtain maximum profits without hurting either your consumers or your company.

At Daemon Quest, we develop pricing models adjusted to the qualities, purchasing power, purchase volume, development potential, loyalty and profitability of your customers. In this way, you will be able to intelligently set your prices.

Do you need to optimize your Pricing Models? We can help you...