Pricing has a dramatic impact on your bottom line.

But with such a powerful tool, precision matters.

Common Questions in Pricing

  • Key Value Items: Which products are the must-wins in your store?
  • Competitive landscape: How are you playing against your competitors?
  • Category factors: Is your product vulnerable to forward buying? Is it a necessity?
  • Channel positioning and preference:¬†How is your ecom business competing with your other channels?
  • Brand value: Is discounting hurting your brand? Can you better leverage your brand’s value?
  • And of course Price elasticity: How do consumers respond to your price changes? What happens to related product sales?
How Do We Address These Challenges?

1) Measure Elasticity

  • Base Price Elasticity
  • Cross-Price Elasticity
  • Promo Elasticity
  • Price Thresholds
  • Gap Analysis

2) Layer in Second-Order Effects

  • Fixed Cost Leverage
  • Volume Targets
  • New Entrant Prevention
  • Brand Positioning
  • Cannibalization

3) Set Competitive Landscape

  • Competitive Channel Mix
  • Competitive Price Response
  • Game Theory
  • New Entrant Prevention
  • Omni Channel Strategy

For more information on Penfield Retail Pricing success stories, please see our section, or Contact Us.