Strategic Insights

Pricing strategies

Getting pricing right is the key to optimizing both resources and revenues. RSG helps clients maximize their strategic pricing, whether it be by maximizing market share, revenues, or equity for those using the service. We provide insight into a range of pricing issues, including segmenting and targeting based on price sensitivity and sociodemographics, establishing price parameters for a new product concept, and developing sophisticated market simulation models that estimate demand and revenues across different price points. Our pricing work is also conducted frequently for projects in the public sector, where optimizing on things like equitable pricing for all demographic segments is critical in addition to market demand and revenues.

Just as customers typically make purchase decisions by considering more than just price, our approaches emphasize the importance of analyzing price within the context of other influential product and service features and pricing parameters (e.g., reliability and travel time for a public transit option). This comprehensive approach is more sensitive to the overall purchase decision. As a result, our pricing models are more accurate, responsive, and our insights create a clearer path to achieving strategic goals.

Related Projects

Impact of Road Pricing on Traveler Behavior

RSG conducted a study with the Volpe National Transportation Systems Center (Volpe Center) to measure changes in travel behavior in response to road pricing projects in Seattle and Atlanta. The study purpose was to provide…

Portfolio Pricing, Assortment, and Innovation Optimization

A packaged goods manufacturer owned a portfolio that had grown to 30+ items across four segments. The portfolio was a key growth driver for the manufacturer, with plans to expand the line in the future….

Pricing and Bundling of a Complex B2B Service Offering

A leading HR and Payroll outsourcing company wanted to optimize its pricing and product bundling scheme to maximize revenue while still simplifying its product offering. Prior to our study, the client had a complex offering,…

Airline Pricing Strategy

A major commercial airline was considering bundling convenience features with ticket fares to complement its basic “no-frills” offering and capture greater market share. By bundling ancillary features/benefits, such as free checked baggage, lounge access, and…

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