Innovation: Pricing.

We like our customers to make a proven profit based on our pricing research

We believe that it’s horses for courses and offer different approaches tailored to the pricing / product situation. We also see pricing as a function of three elements: costs, customer perceptions and company specific issues:

RedRoute Pricing

  • Value based pricing determines the value to the customer / consumer and takes into account product positioning. We would use different approaches depending on the situation:
    • The product / service is revolutionary or unique
    • The price can be changed without fear of competitor responses
    • Complex scenarios incorporating product /service features into price, effects of brand and price as well as other attributes. We can even separate unique price curves per brand

  • Cost-based pricing: In order to build realistic scenarios we need to understand the cost basis for the product including fixed cost, variable cost, cost changes and demand. Only then can the price be set to a level that optimises company profitability.

  • Company specifics are factors that help to fine-tune all pricing research. We like to be thorough and hence we will also take into account other factors that will ensure you can rely on our recommendations:
    • Your company’s strategic aims for the product / category / company overall and where the product fits in.
    • How many brands are you competing against, and whether the pricing influences sales of your own range?
    • How are competitors likely to react to the new product / changed pricing?
    • Are there any specific price sensitivities that we know about?
    • Take into account not only consumer pricing but also retailer and channel specific pricing

If this sounds interesting why not simply give us a call and have a chat? Tel: +44 (0) 20 7917 6042