What we do

Pearson Ham are pricing specialists. We marry the science of analytics with the art of strategy to help our clients improve their pricing and business performance. We tailor our services, drawing on elements from the following four areas to create the ideal solution.

Strategy

We review a client’s pricing strategy to learn how it can be developed to deliver improved business performance.

The process includes:

  • Assessment of alignment between the pricing strategy, the business strategy and the market context
  • Collation, interpretation, and analysis of data on customers, competition and products, including all aspects of pricing
  • Consideration of alternative pricing models and best pricing practices
  • New pricing models applied to define the best opportunities

OUTPUTS

Identification of key opportunities to improve pricing, addressing:

  • Value capture mechanisms
  • Customer, product, channel and competitive price strategy
  • Price structure and denomination
  • Bundling, discounting and promotions
  • Price communications

WHEN IS IT NEEDED?

When a company lacks a clear pricing strategy that reflects its market context and capabilities.

When changes have occurred in the market place.

When new insights on the market emerge.

When a company competes in complex market conditions or has a complex product portfolio.

Architecture

We examine a client’s customer/business data to find how to maximise the value of the offer, refining the price structure and price levels. This includes:

  • Analysis of price elasticities and drivers of variations
  • Assessment of variable margins cut by channel, product and customer segment
  • Development of an optimisation model
  • Scenario modelling to demonstrate possible outcomes and opportunities

OUTPUTS

A price architecture that delivers superior volume and value performance due to:

  • Better understanding of elasticities and margins
  • An ability to accurately project the impacts of price changes on value and volumes

WHEN IS IT NEEDED?

When prices drive strong customer reactions.

When companies compete in heterogeneous markets.

When margins are tight.

When a company has a complex set of products.

Offering

We study how a client communicates price to the customer through discounting, promotions and price messaging, including:

  • Assessment of current discounting and promotions performance on a volume and economic basis
  • Review of price communications and perceptions in the market place
  • Consideration of alternative strategies

OUTPUTS

The identification of good discounting and price communication strategies:

  • Discounting strategy outlining qualifying criteria, extent, currency, objectives, measurement and hurdles for promotions
  • Price communications strategy outlining price discovery, matching, signposting, rationale and price pointing

WHEN IS IT NEEDED?

When price levels are prominent in customer decisions.

When price communications do not convey the value of a company’s brand.

When promotions and discounting are key drivers of behaviour.

Processes

Working to strengthen a client’s pricing team, we assess how good pricing is communicated and applied within an organisation, looking at:

  • Capabilities of the pricing team
  • Decision making processes
  • Data considered and analytics performed
  • Models and IT infrastructure
  • Involvement of other functions and management team

OUTPUTS

A more effective pricing infrastructure, incorporating:

  • An assessment of the current pricing framework and the extent to which it delivers to its requirements
  • Plans for the development of the pricing team, decision making processes, data, metrics and models

WHEN IS IT NEEDED?

When pricing is not fully understood beyond the pricing team.

When the pricing team is struggling to understand and capitalise on all market opportunities.

When senior management are not able to guide key pricing decisions.

When the end price charged bears little relation to the one set by the pricing team.

Pearson Ham Consulting Ltd
50 Eastcastle Street
London, W1W 8EA
Tel +44 (0) 203 583 9969
contact@pearsonham.com
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