Almost every company deals with product pricing every day. However, some firms have realized that improving the way they price their products can boost profits substantially. Many large firms, even those with sophisticated marketing programs, still rely on simplistic cost plus pricing models that leave lots of money on the table.

Product pricing often appears to be the simplest pricing exercise possible. Setting prices based on costs and institutional knowledge about the market is quick and simple. This traditional approach requires no external data, little research, and can be accomplished quickly.

The problem is that the only way to discover the optimal price for your products is to understand your customers preferences and their willingness to pay. It is surprising how often companies do not even consider asking their customers what the price should be, since they assume that customers will always answer as low as possible.

These are some examples of product categories in which PriceGain’s expertise have helped companies improve profits: