Pricing Directly Impacts Business Success
Priced to Market. Priced to Sell. Priced to Profit.
Pricing your products and services can be complex due to a large number of critical considerations that directly impact your business success. When properly developed, the right price:
- Provides Proper Margin to Fund Business Operations
- Creates Interest to Learn More
- Rationalizes the Buying Decision
- Properly Communicates the Value of the Product or Service
The complexity of pricing results in many companies believing the misconception that if they don’t get pricing right the first time, they can simply change the price until customers are willing to buy. Companies who approach price in this manner often set initial prices too low out of desperation to sell, which affects both the company image and profit margin.
Price planning and efficiency can increase top-line growth by an average of 10% per year and increase net profitability by up to 20%.
(Source: Ivey Business Journal)
The Art and Science of Pricing Strategy
Understand. Plan. Execute. Analyze. Optimize.
Effective pricing strategy requires four components. Similar to a four-legged stool, you can get three ”legs” exactly correct, but neglecting the fourth will result in revenue instability. Atomic Revenue works with clients to apply all four core components to a price strategy in addition to validating price within a financial operations model.
Mathematical determination of costs of goods sold, cost of sales, margin requirements, customer acquisition model, and other key factors required to set a maximum and minimum price range.
Competitive Price Evaluation
Analyzes alternatives available in the marketplace, the presence of direct or perceived competition, how the calculation of price fits within the market framework, and how the company brand position matches that market position.
Evaluates how a target customer purchases similar goods and services as well as their cash flow and usage parameters, positioning pricing in a way that addresses potential sales objections.
Recognizes that most companies offer pricing options, with a preference for which option a customer chooses, price presentation is the visual and contextual delivery of price options giving customers a choice while influencing buying decisions toward a company-preferred alternative.
What Adam has to say about Atomic Revenue...
The Financial Operations Model by Atomic Revenue was instrumental in gaining traction and generating revenue for our software service company.
What Nathan has to say about Atomic Revenue...
Tara and Atomic Revenue were invaluable in our process to streamline multiple data points to provide and present the KPI reporting that really matters to Executive Management.
Marketing Operations Director, Enterprise Bank & Trust
What Jason has to say about Atomic Revenue...
Atomic Revenue has greatly impacted my work experience at OMiga, by shortening my sales ramp-up period. Their sales tools have helped me communicate real value to the 17 new clients I have on-boarded since joining OMiga only 7 months ago.
Sales Executive, OMiga
What Tom has to say about Atomic Revenue...
One of the most valuable outcomes of our engagement with Atomic Revenue has been the Impact Declarations. Now seeing how powerful they are in collateral it is clear why Value Propositions aren’t enough.
Co-Founder & CTO, Boosterville
What Karen has to say about Atomic Revenue...
When I met Atomic Revenue, bank leadership was happy with our traditional marketing but we had no marketing attribution data. Without performance benchmarks, we cannot measure the effectiveness or return-on-investment of a marketing budget. The market required a shift away from traditional marketing campaigns, but credible ROI metrics would be necessary to measure the improved impacts on buying behavior. This is the problem that Atomic Revenue solved for us.
Sr. VP Marketing
What Hassan has to say about Atomic Revenue...
We were looking to build our brand and better understand how to implement a digital marketing strategy designed to attract, engage and retain clients. Atomic Revenue's Digital Operations Audit shed light on what was working, and not working as well as we would like, allowing us to focus on what needed to be done without spinning our wheels.
Director of Operations, HIPPAtrek
What Josh has to say about Atomic Revenue...
Director of Digital Marketing, Decantery