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 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.

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.

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. 

Adam

Founder Lifeblood.io

 

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. Nathan Nelson

Marketing Operations Director, Enterprise Bank & Trust

Learn more about KPI Management

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. 

Jason Clark

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. Tom Cooper

Co-Founder & CTO, Boosterville

Learn more about the Core Messaging Program

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