Pricing
Finding the right price for your customers is one of the most important business decisions that growing companies make. Finding the right price can be 4x more cost effective than channel optimization, and companies that do not use data-informed pricing strategies leave up to 15% of revenue on the table. We use a standardized mixed-methods approach for discovering and validating the an optimal price for your offering.
Purpose
To identify and quantify the value drivers of your company offering and develop an understanding of its consumers’ willingness to pay.
Approach
Phase 1: Discovery
Theory will conduct 5-7 customer interviews to uncover the value drivers behind the product. With a list of previous customers’ contact information, supplied by the Client, Theory will manage communication, scheduling, and incentives. Phase 1 will conclude with a summary report and an interactive session with the Client to determine testing factors.
Phase 2: Validation
Theory will utilize a range of quantitative tactics including the Van Westendorp Price Sensitivity Scale and conjoint analysis to provide the client with an analysis of product price, percent of potential customers reachable at specific price points and the core value drivers for potential purchasers.
The final deliverable will include an analysis of demand elasticity for different price options and any qualitative insights on pricing and sales levers we are able to uncover.
Watch us in action
Founder Andy Rooks spoke about the importance and impact of pricing on early stage companies at Tech Day Town Hall.
If you are interested in working with us for our Pricing services, please apply using the link below. Scholarships are available for qualifying applicants.