Make confident pricing decisions with fast project turnaround
Posted on 20 October 2020 Conjoint.ly
Using market research to test pricing for new and existing products eliminates the cost and uncertainty, allowing you to predict your audience’s reaction and find an optimal price without disturbing the market.
Pricing is a key driver of profitability for all businesses. Price your product too high and you will lose consumers to competition, price too low and you will be missing out on potential revenue. Testing new pricing on the actual market to assess consumers’ acceptance is a high-risk and costly procedure.
Conjoint.ly offers a range of specialised pricing tools to help you implement effective pricing strategy and make confident pricing decisions.
Establish a psychologically acceptable range of prices
What are consumers willing to pay for your product? To find out, you need to know how they perceive each different price point, and how this demand changes across a range of price points. Use this data to choose the most profitable price for your product.
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Discover the effects of pricing on sales, revenue, and market share
You must understand how increasing or decreasing pricing will affect demand for your product to determine its profitability. Test if discounts or promotional efforts will encourage consumers to buy your product. Learn how tiered pricing offerings will affect your product or service’s profitability.
Test pricing of new and existing products in a competitive context
Assess the relative value of the brand through outputted elasticity charts, revenue, and profitability projections. The result is a ranking of preference relating brand to price that individuals are willing to pay. Build models across a market as a whole showing likely take up of different brands at different prices, together with estimates of revenue and profitability.
Determine pricing across various brands, SKUs, or price tiers
How can you optimise pricing across a range of your products? Use market simulation to identify the optimal price to charge consumers under various scenarios. Identify the price that maximises market share, profit, and revenue through market simulations.
Focus on market dynamics rather than understanding the feature and price trade-offs. The market simulator can identify the price that can maximise share and also reveal the price at which revenue and even profit can be maximised. This is one of the greatest advantages of using conjoint analysis in pricing research.
Conjoint.ly helped books-on-demand provider determine optimal price for subscriptions
Book Co is a major books-on-demand provider in Egypt. Given intense competition in this market, Book Co would like to measure the value customers place on book streaming over the Internet.
As part of the strategy review, the insights team would like to test for non-paying users, competitors’ users, and Book Co’s paying users:
- What is customers’ willingness to pay?
- What is the optimal price of subscription to maximise its revenue?
- Book Co. tested eight price points for its paid subscription using Conjoint.ly’s platform.
- Gabor-Granger confirmed the Price elasticity of demand and Predicted revenue vs. price level of Book Co.’s paying subscription for different segments.
- The study provided agile and actionable insights to help Book Co. understand customers’ demand. For example, results suggest that the optimal subscription price for its users is $17.99/month.
- Findings were immediately available upon completion of the project.
Fast and reliable results for pricing projects
Conjoint.ly platform makes pricing research easy
You get agency-quality results at a fraction of the cost and time investment. One powerful end-to-end platform for insights teams for fast and reliable market research.
Support for insights teams
Get answers to questions about pricing strategy and running pricing experiments. Our team will help your insights team understand consumers and make confident pricing decisions.
Book a quick call today to talk with the team who specialise in pricing research methods.
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