PRICING STRATEGY

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 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.

Science

PRICE CALCULATION

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.

Art

PRICE POSITIONING

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.

PRICE PRESENTATION

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.

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What Our Clients are Saying…

Atomic Revenue brought me untold clarity around my entire sales planning process. They introduced many variables into the equation that I had simply not thought through before. Their partnership in my planning efforts was so organized that everything seemed to just coherently fit. As a successful business owner, I know the destination of my company and that we have made tremendous progress getting there. That said, Atomic Revenue added incredible dimension to my business planning so that we are arriving at our goals faster and much more cost efficiently. I am the expert in my business. I feel Atomic Revenue is the expert that advances my business with meaningful direction and urgency.

Ed McGoldrick

Practice Director, TempExperts, CarterWill Company

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. I appreciate OMiga’s understanding of the importance for putting the right infrastructure in place to allow me to be successful from the start. Atomic Revenue has worked with us to create highly compelling rationale on exactly why customers should buy from us.

Jason Clark, Sales Executive, OMiga

As good as I thought I was at sales and marketing, and I’ve been doing this for 20 years, I’ve learned through working with Atomic Revenue how little I actually knew about the integration of marketing and sales, and how much money I have wasted over the years. I look back at all the middle-market companies that I have worked for over the years and none of this revenue strategy is even on their radar.

Michael Hollingsworth

CEO & Founder, Centerprism