Pricing for Profit series, Part 6: Business Modelling

  • 1 Sep 2022

Decision makers in companies that offer subscription services often face three common challenges; How do you attract more paying customers? How can you increase Average Revenue Per Customer? And how can you reduce churn rate? Through a Business Modelling project with PriceGain, you can increase your profitability by 10 percentage points on average.

So how can we do this?

We regularly see that our clients find difficulty in approaching these three challenges all at once. The key is to understand how your business goals are affected by price changes and how to prevent unwanted cannibalization. Secondly, it is crucial for companies to understand their customers' needs and preferences, and how they value your offer versus the offer of your competitors. With customers' measured and quantified willingness to pay as input, PriceGain's Business Modelling can determine the combination of price points that are optimal based on your cost structure and your business goals. Business Modelling can therefore ensure the best possible outcome, regardless if your business goal is to maximize profit, increase market share, or something in-between. Through the help of PriceGain, we can boost your profitability and sales by 3-10 percentage points on Return on Sales (ROS).

If you wish to receive expert help in developing your pricing strategy and improving your business results through one of our Pricing Projects, contact us!