What we do
What is the optimal price point for your product?
Finding the right price for products and services can be a challenge. Suppose you have a new product and don’t know how much to charge for it. Or perhaps you want to update your pricing strategy for an existing product range. How do you find the optimal price? A Pricing Study can be used as a risk-free way to try out promotion strategies, and to model the effect that competitor price changes have.
- We help you to identify the contexts in which a price increase is feasible and those where it is not. We can also identify discounting plans or seasonal offers that will increase total demand without hurting profitability.
- Another valuable insight is that we can identify price points for different variations in your product or service that will maximise total revenue when a variety of different options are marketed together.
- These insights have helped our clients to update their pricing strategies so as to confront a variety of significant challenges from tax increases to the post-COVID retail environment.
How we do it
Mindlab has developed an innovative methodology for tackling just such questions.
Our bespoke pricing paradigm uses the principles of implicit testing to measure the intuitions that consumers have about price points. It combines our tried-and-tested virtual marketplace environment with some of the latest statistical techniques to capture the complex decision-making that goes on inside consumers’ minds when making even small purchases.
We begin by working closely with you to create a carefully designed set of scenarios that address pricing, format and discounting in a competitive landscape. We then create a virtual shopping experience online and invite participants to select products or services to purchase. Our testing system puts participants under time pressure to make these selections, which allows us to explore the gut feelings that largely drive consumer behaviour.
By varying prices in a systematic way over hundreds of trials, we can discover how demand varies with price for different products or services under different pricing and discount scenarios.
Seen what we do, but wonder who we do it for?
Here are some of the clients we work with...