The art of pricing
Pricing. It can be both the most important driver and destroyer of your profits. And still, so many companies don't have any pricing strategy.
Many frameworks, strategies and approaches exist. Yet, it is too often based on wrong assumptions, past experiences, or even gut feeling. Pricing right is an iterative process that takes time, costs money, and requires effort, but it does pay off. Big time.
BrightWolves helps companies in finding and maintaining the right pricing .
"We are used to heavily invest in production plants, IT, sales and marketing - and yes we have always been excellent in cost cutting - but we underestimated the impact of pricing in value creation."
CEO of a private equity company
Boost your profits using value-based pricing
Price according to the value offered to your customers. It is the pricing strategy known to maximize your company’s profits sustainably. However, many are facing problems to obtain and maintain the benefits of this strategy.
Being successful in developing and implementing a value-based pricing method requires more than identifying your customer’s perceived value. Alignment and communication is key. It is part of a value strategy that goes further than pricing solely.
BrightWolves developed its own approach to successfully implement a value-based pricing method.
Thrive by implementing subscription pricing
From magazines and newspapers to food and clothing. Subscription models are everywhere. Fueled by technology, this rising trend does not seem to phase out soon.
Companies have noticed the benefits. Recurring revenue streams and stronger customer relationships are two examples. Customers benefit too. They experience increased convenience and make a shift from ownership to access.
Transforming your business model to a subscription-based model can be challenging. BrightWolves created its own framework to guide companies in finding the right subscription price.
Make well-judged pricing decisions using
Total Cost of Ownership
Total Cost of Ownership (TCO) is a methodology used to uncover all costs associated with the purchase, ownership & disposal of a certain good or service.
Traditionally, TCO is used to unveil possible cost savings. On top, it enables to persuade potential customers. Having a higher degree of transparency makes you a trustworthy partner to go into business. As such, it can directly assist you in finding the right price for your product or service.
Building a solid TCO model requires a strong iterative approach with which BrightWolves can help you.
Find out about our other pricing offerings
Avoid margin leakage by using the power of advanced analytics
Margin leakage occurs when there is a large gap between your pocket price and list price. The effect on your profits is devastating. Many causes exist and are difficult to detect. Examples include discounting and under-optimised prices.
At BrightWolves, we make use of advanced analytics to conduct margin leak analysis at three different levels: customer segments, product/service and client.
Remove the BAD buzz about price increases
Increasing prices. Companies avoid the topic while it is a necessity to maintain the desired level of gross margin. Cost increases, changing regulations, and inflation leave companies with few options. It can be scary as customer perception is everything. When your product or service is seen as too expensive, it can destroy your brand.
Preparation is key! BrightWolves helps clients to anticipate customer and competitor reactions to avoid creating a BAD buzz about your price increase.
Solve the puzzle of pricing new products or services
Price too high and customers will not be interested. Price too low and give up revenues and profts. International competition and increased transparency in prices, fueled by the digital evolution, make it even more challenging. Whether your offer is revolutionary or an improvement, pricing new products and services can be tough.
BrightWolves can guide you along the way by evaluating the true value of your product or service, the market and your potential customers.
Read our clients' testimonials
"Calling on BrightWolves to help us on the pricing of our complex solution enabled us to save time and money. Miguel and his team introduced us to their subscription pricing framework and helped us to apply it with great success."
Evarest Schoofs - Co-founder One Bonsai
"Pricing of our solution is a topic where we struggled to find the right angle. Thanks to the coaching program of BrightWolves, we finally found the right approach to monetize our solution."
Hans Pauwels - CEO Tappable
"BrightWolves enabled us to more accurately assess the impact of our product and guide pricing decisions. In 4 weeks, they built a TCO model which we now use with our potential customers. We have had the honor to have been presented many awards over the years, but in terms of impact winning the sustainability challenge and therefore the consulting mission was of great value to us."
Filip Roose - CEO Fit Things NV
"The support of BrightWolves guided us in our thinking process and enabled us to sharpen our value proposition and structure, possible pricing models. They also helped us to set-up the right experiments and interpret the results."
Elly Huysmans - Strategy & Innovation Director Het Poetsbureau
"Working with BirghtWolves on the pricing of our solution is of great value. Miguel changed the way we perceived the value we deliver to our clients. He also kept being supportive as we implemented the first improvements."
Edouard Beauvois - CEO AiVidens