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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:

  • Developing strategic pricing plans in support of new market entry

  • Performing 'game theory' analysis to evaluate potential competitive response

  • Calculating profit-maximizing price points

  • Developing market demand analysis

Below is a sample of some of our work in pricing analysis:

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

 


Benchmarking
Feasibility Studies
Market Analysis
Pricing Analysis
Strategy Development

 

 
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