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Price and Promotion Optimization

Price and Promotion Optimization What is the right price for your product or service? Too high and you kill your market. Too low and you leave money on the table. Cascade uses a market-based, data-driven approach to find the right price and works with the client to integrate the optimal price into an effective sales and marketing process. This approach considers:
  • Price Elasticity – How sensitive are customers to price and to changes in price?
  • Brand Premium – If everything else is equal, how much more (or less) are customers willing to pay for your product or service?
  • Customer Segments – What groups of customers have similar buying behavior?
  • Cost – How does the cost of serving different customer types vary?
  • Competition – What are competitors offering and how will they react to your price changes?
  • Strategic Business Goals – How can better pricing help meet strategic growth and profitability goals in each market segment?
To optimize a price or promotion, Cascade considers the market or demand-side of the equation as well as the cost or supply-side of the equation. On the market side, we must understand how different customer types will respond to potential pricing actions. What is their buying behavior? On the cost side, we must understand the costs of serving each type of customer. Integrating the two means that we can select a price or promotion level that will optimize the contribution or margin from the customer.


SUCCESS STORY
Profitable Pricing with Branding Impact
Cascade and Schneider National developed Customized Pricing to systematically integrate market and network cost information with strategic business objectives to set lane-level prices by account. SNI's key objective was to set more profitable prices in a highly price sensitive environment, while leveraging the company’s brand advantage.


Cascade Consulting Partners
240 East 15th Avenue, Eugene, OR 97401
Phone: 541.942.5914 | Fax: 541.484.1498 | Email
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