Determine Your Optimal Price Point
Your product—regardless of quality—will remain on the shelf if your target market is unwilling to accept the cost required to buy it. We offer tools to gauge pricing strategies for new and existing products, for first-time pricing strategies and price optimization. BioInformatics can forecast sales at multiple price points to determine an optimal price and to predict profit potential for each product.
Companies in the same market regularly speculate and shift price points to optimize profit and remain competitive. BioInformatics takes the guesswork out of pricing by performing multiple analyses to assess current pricing, find optimal price points, and draw attention to changes in competitor pricing.
Case Study: Instrumentation Pricing Analysis
A valued BioInformatics client sought to set a competitive price point for new life science instrumentation. We employed pricing research techniques to gauge both acceptable and optimal price points for the product. Our pricing analysis toolkit provided new insights into how potential customers viewed our client’s instrument pricing and other features.
The Pricing Analysis Toolkit
BioInformatics regularly utilizes three primary tools to investigate pricing issues and formulate profitable strategies:
1) Van Westendorp Price Sensitivity Analysis provides the optimal price point for virtually any product. In addition, this powerful analysis uncovers the points at which customers will perceive your product as “too cheap," “too expensive” or “price indifferent." BioInformatics uses this technique to help you set the exact price at which you will be the most profitable.
2) Conjoint Analysis allows you to assess price in connection with a set of product features. Using conjoint, BioInformatics can help you build the optimal configuration of features at the price points desired by potential customers. Our strategy removes risk by assessing what prices customers are willing to pay for bundled product features.
3) Price-Performance And Relative Value Analysis isolates two crucial variables: price and performance. By assessing these factors independently and as a single unit, BioInformatics will determine whether potential customers perceive your product as a good value for the price or if performance is being overshadowed by immense cost. Finally, we compare your product to your competitors to understand which suppliers are seen to offer the greatest value in the market.