Considering a price increase
This successful start-up company has been operating for several years, but has never increased its prices. They asked us to help with their thinking, provide a methodology for taking a decision and ascertain the options.
We outlined the Ripe methodology for the team and data requirements. They completed the majority of the data collection and we provided some additional consumer information. We developed and conducted workshops initially outlining the theory and some examples of how pricing can work, and reviewed the business data and its application for taking pricing decisions.
The review of the data demonstrated the company’s position within the category, how the brand was positioned with consumers and customers and how this could impact their pricing. This knowledge gave them more confidence about the potential to increase price. Options were developed and a plan agreed. They are now looking into what they need to achieve to undertake a price increase and when it should be implemented.
Often a company has all the information it needs to take a decision, but is not applying a structured methodology, making it difficult to draw the right conclusions