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Making appropriate
pricing decisions is a key step for companies that
compete in the marketplace. A well-designed pricing
strategy should always support the overall financial
goals of the firm, fit the realities of the marketplace,
and support the overall positioning of the product or
service in question. The appropriate price points chosen
are typically affected by
the
type of distribution channel used, the type of
promotions used, and the market perception. Taking all
of these factors into account on a dynamic and real-time
basis is a difficult endeavor.
The Shpigler Group uses statistical modeling and
fact-based analysis to guide our customers when it comes
to making the appropriate pricing decisions. We use
detailed market research to drive conclusions with
regard to pricing for our clients. Methods commonly used
in our pricing work include regression analysis, market
demand calculations, business case analysis, and 'game
theory' analysis. As a result of our work, we are able to
guide our clients in the development of the
value-maximizing pricing strategy given their unique
circumstances.
Some common areas where clients have sought our support
include:
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Developing strategic pricing plans in support of new
market entry
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Performing 'game theory' analysis
to evaluate potential competitive response
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Calculating profit-maximizing
price points
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Developing market demand analysis
Below is a sample of some of our work in pricing
analysis:
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Developing fiber pricing study for municipal utility
entering into metro fiber market. Collected data on
prices for dark and lit fiber on competing fiber
routes and calculated likely market demand for
bandwidth. Conducted regression analysis to analyze
the true drivers of price differentiation on fiber
routes. Conducted 'game theory' analysis to develop
optimal pricing strategy.
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Developing a pricing model for a
developer of communications systems. Conducted
financial analysis to determine value-based price
points and calculated potential customer adoption
rates given different pricing scenarios. Developed
financial model that demonstrated financial
characteristics of varying market approaches for
different market segments.
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Performing 'Monte Carlo' simulation on business plan
for proposed broadband deployment. Calculated
potential range of valuation, rates of return, and
funding requirements based on differing price plans.
Developed ‘worst-case scenario’ in support of
go/no-go market deployment decision.
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Developing proposed rate design in support of 'smart
grid' system for regulated utility. Developed
detailed financial analysis outlining the financial
impacts of system deployment for state regulators.
Analyzed the different models for cost recovery,
including surcharges and graduated rate recovery.
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Collecting information on market potential in
support of strategic pricing project for
manufacturer of fiber-based Wave Division
Multiplexing systems. Analyzed
Utilities Telecommunication Service Providers market and delivered views on optimal market
entry approach. Developed analysis on market
potential and identified top customer targets and
viable price points. Delivered briefing outlining
key market characteristics for dedicated sales
staff.
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Developing advocacy paper on the potential of
distribution automation programs for electric
utility community. Profiled the stakeholder benefits
associated with the implementation of a ‘smart grid’
system and evaluated public policy impacts. Outlined
key advantages stemming from energy efficiency,
system reliability, service quality, and economic
efficiency as a way to lobby for favorable tax
policy. Delivered cost recovery methods and proposed
supporting tax policy.
The Shpigler Group will
work with clients from beginning to end, identify
resources needed, and design a solution that fits with
your specific needs. Please contact us at
info@shpigler.com to find more about how we can help
you succeed.
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Benchmarking
Economic Development
Feasibility Studies
Financial Analysis
Market Analysis
New Product Strategy
Pricing Analysis
Strategy Development
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