When the price goes up, sales go down. When the price goes down, sales go up. Or do they?

The right price to charge for a new product (or even an established product) can seem at first blush like a fairly simple decision. But the pricing dynamics in an image-driven category (as most beverages are) are seldom as straightforward as indicated by the rules of supply and demand we may remember from an economics class. And so the pricing decision can come fraught with pitfalls.

That’s because pricing isn’t just a sales tool. It’s a marketing and brand building tool that creates expectations among your customers – expectations of quality and more. If the initial price is set either too high or too low, there may be few good options for correcting the pricing over time without harming the brand.

Our analyses can help determine your most effective pricing strategy through a mix of rigorous economic analysis and more qualitative consumer research. Together we’ll develop a dynamic pricing strategy that not only optimizes the current price, it can provide “if-then” guidance in response to potentially changing market conditions or consumer preferences. It can also guide your use of promotional pricing – when to use it (and when not to) and what the likely impact may be.

Your brand will maximize profits, optimize sales and build brand equity based on our integration of multiple inputs, as appropriate:

  • The role of your brand positioning and portfolio strategy
  • Demographic and economic review of the relevant geography
  • Identification and analysis of the competitive set
  • Econometric analysis
  • Review of the current brand and pricing landscape
  • Review of off-premise shelf sets and on-premise tap lists
  • Retailer expectations and inputs
  • Retail segmentation