New Product or Service Pricing

When preparing to launch a new product or service it is imperative that you get the price right the first time and that you base it on hard data from your marketplace; the value perceptions of the buyers, their willingness to pay, and expected price elasticity and demand curve. Any other method is guaranteed to render the wrong price - sometimes completely wrong, sometimes less so.

We recommend you begin this process early in the development phase as the hard marketplace data may affect your final product or service offering, bundling or un-bundling and how to position and market the offering. The data enables Atenga to recommend a pricing strategy that meets corporate objectives; maximizing market perpetration, targeted at certain market verticals, against certain competitors, designed to minimize internal cannibalization, or to maximize profitability.

Pricing Existing Product or Service

The vast majority of companies have areas of opportunity to significantly improve profitability through pricing improvement.  By engaging Atenga in a Value Optimized Pricing project you will discover the value perception of your buyer, their decision drivers, and optimal price point, and their willingness to pay.

Product Life-cycle Pricing

Every product/service has a multi-pronged pricing lifecycle.  The product/service is priced into the market to achieve a stated goal.  As the elasticity changes, due to competitive pressures or similar products entering the market, the price is re-adjusted to its optimum price point based on the data.  As the product matures a deprecating pricing model may be used.  And finally, the product is priced out of the market.

This is a complex process and, to do it right, the process needs continual measurement and management.  Atenga provides product lifecycle price management as a packaged service.  This service can be applied to a particular product/service or across a portfolio of products/services.

To learn more about this service, contact us.

Engaging Atenga FAQ

Q: How disruptive will this be to my business?

A: We find this question to be the largest barrier to implementing best practice pricing.  We find that the fear is unjustified and the disruption to current business activities is minimal.  The Atenga methodology was designed with this in mind and we do not require any dedicated resources from our clients.

Q: What internal resources are required for the engagement?

A: At project kick off we require a few internal executive interviews to establish internal project objectives, project plan with defined milestones, and define pricing objectives.  Once complete, Atenga begins its research.  For the remainder of the project all that is required is a review team to discuss deliverables.

Q: This sounds expensive?

A: It can be, but not with Atenga.  The major consulting firms all have pricing practices that require a large amount of internal resources and a team of consultants.  The Atenga model and methodology is much different.  Our goal is to provide great value for the money.  Our services are in the tens of thousands, not hundreds of thousands.  And, after initial interviews of executive staff, we require no dedicated resources, just a project team that will review and discuss Atenga deliverables.