Price Case
Determine the optimal price that maximizes profitability and market acceptance.
Evaluate your consumers’ willingness to pay and price sensitivity to find the ideal balance point.
Optimize your prices to maximize revenue and competitiveness
The Price Case analyzes your customers’ willingness to pay, their price sensitivity, and the perceived value of your product or service. This helps identify the optimal price range that balances profitability, market acceptance, and competitive positioning.
What is it for?
- What is the optimal price that maximizes revenue without losing customers?
- How price-sensitive are my target consumers?
- How do they perceive the value of my product relative to the price?
- Am I pricing too low and leaving money on the table?
- Is my current price creating resistance or purchase barriers?
- How would customers react to price changes?
- What pricing strategy differentiates me from the competition without hurting profitability?
Benefits
Maximize your profitability:
Find the price that balances customer satisfaction and revenue.
Avoid costly mistakes:
Identify if your price is too high or too low for market acceptance.
Segment by price sensitivity:
Tailor strategies for different consumer profiles.
Strengthen your competitiveness:
Compare your pricing to competitors and analyze added-value factors.
Make data-driven decisions:
Create pricing policies for market penetration, premium positioning, or market share growth.
How we conduct a Price Case at Lemon Ice
Objective Definition
We determine whether your goal is revenue maximization, penetration, or premium positioning.
Selection of Appropriate Sample
We gather consumers representative of your target market.
Key Factor Analysis
We evaluate optimal price ranges, elasticity, willingness to pay, and price-quality trade-offs.
Methodology Options
- Van Westendorp (Price Sensitivity Meter - PSM): Defines acceptable perceived price ranges.
- Conjoint Analysis: Assesses trade-offs between price and features to understand real preferences.
FAQs
Which methodology is best for a Price Case?
It depends on your goal. PSM is ideal for direct price ranges, while Conjoint helps understand how price interacts with product attributes.
How many prices should I test?
Typically 4 to 6 price points per product/service are tested to generate a clear sensitivity curve without overburdening respondents.
Is it only for physical products, or can it be used for services too?
It works for both. You can apply it to consumer goods, services, subscriptions, and even digital models.
What if my current price doesn’t match the optimal range?
You can decide whether to adjust pricing, revise your value proposition, or improve communication to justify the price.
Can different pricing segments be analyzed?
Yes. We can segment results by demographic, socioeconomic, or attitudinal profiles to build differentiated pricing strategies.
How often should I review my pricing strategy?
We recommend doing so when there are changes in cost, competition, product launches, or shifts in perceived value.
How long does a Price Case take?
Depending on complexity (number of prices or methodologies), results can be delivered in days or a few weeks—ready for immediate decision-making.
