Swedish revenue experts promote upside of correct pricing during market downturn
Swedish revenue consultancy, PriceGain, will travel to the US to highlight the profit-boosting power of pricing – a potent device in the bid to protect profits from recessionary pressures.
Correct pricing is an exact science. Setting a low price attracts plenty of buyers, but the slim profit margin will result in insignificant revenue. Fix it too high and customers will simply not make the purchase. Land on the right number and remarkable profit can be unlocked.
“Pricing is a hidden profit booster that many companies simply overlook. It’s an instrument that every company should consider, particularly in the current climate, and it’s one of the most effective ways to steer a business out of difficulty,” says Göran Skugge, one of PriceGain’s senior partners.
Skugge is due to present his strategies in a speech entitled “Pricing Based on the True Willingness to Pay’’ at the Professional Pricing Society‘s (PPS) 19th Annual Fall Pricing Conference and Workshop, due to be held in Miami, between October 28 and 30.
PriceGain helps companies develop successful pricing structures based on many different factors, including: competition, long- and short-term company goals, manufacturing, delivery and marketing costs, and the quality of the product or service. However, what matters most is how much the customer values the product or service, and what they think it is worth.
From a country of just 9 million people, Sweden has developed some of the world’s leading brands, such as Electrolux, IKEA and Volvo. Now PriceGain’s pricing strategies are poised to be the latest export set for success. “From our experience in Sweden and elsewhere in Europe, we have seen how even modest changes in pricing structure can improve business revenue dramatically,” says Skugge.
Before joining PriceGain in 2004, Skugge served as vice president at Veritec Solutions, a market leader in revenue management and custom software development. Skugge has a Ph.D. from the Royal Institute of Technology in Stockholm and Masters of Science degree from Stanford University.