Implementing pricing research HD 1080p

Summary

In this video, Phos, the 'Price Whisperer,' discusses the importance of pricing research, a market research subcategory, for understanding customers' willingness to pay. He emphasizes the necessity of turning research data into actionable insights, requiring business experience. Phos stresses the need for companies to embrace change based on new findings and the importance of training employees to act on these insights. He concludes by highlighting the potential for significant growth and profitability when pricing research is effectively implemented.

Takeaways

• 📚 Pricing research is a critical subcategory of market research aimed at understanding customer willingness to pay for a product or service.
• 📈 Correctly executed pricing research can lead to increased profitability, growth, and market share for a company.
• 📊 The research provides valuable data on customer purchase decisions, influences on those decisions, and buyer profiles, including psychological price points.
• 💡 Pricing research should not only predict sales volume at different prices but also forecast revenue and profits to guide strategic business decisions.
• 🛠️ It's essential for the research to be actionable and include interpretations that are relevant to the company's specific circumstances.
• 👨‍💼 Business experience is vital in turning research data into actionable insights and plans, as mere data summaries are not enough.
• 🔍 Each pricing research project uncovers new insights, requiring companies to be open to embracing and acting on this new information.
• 🔄 Companies must be willing to change their strategies and operations based on the findings from pricing research.
• 🏢 Resistance to change is common in companies, so it's crucial to bridge the gap between market realities and company perceptions through training.
• 👥 Training should be ongoing and include role-play to prepare customer-facing staff for real-world interactions and to reduce the gaps in market understanding.
• 🔄 Regular updates to pricing research are necessary as markets evolve, and companies implementing its findings are effectively reshaping their market.

Q & A

What is the primary purpose of pricing research?

Pricing research aims to understand what the marketplace is willing to pay for a company's product or service, which, when done correctly, can help increase prices, profitability, and market share.

What are the key outcomes of effective pricing research?

Effective pricing research provides data on customer purchase decisions, influences on those decisions, buyer profiles, willingness to pay, and identifies price walls and psychological price points.

Why is it important to have business experience when interpreting pricing research data?

Having business experience is crucial because it allows for the transformation of raw data into actionable insights and plans tailored to a company's specific circumstances.

What does the term 'buyer liar' refer to in the context of pricing research?

The term 'buyer liar' refers to the tendency of customers to be untruthful or withhold information when asked about their purchasing decisions, which can lead to a skewed perception of the market by companies.

Why is it necessary for a company to be willing to change after conducting pricing research?

A company must be willing to change because new information from the marketplace may require strategic adjustments. If a company is not open to change, the research will not yield actionable results.

How can a company ensure that the insights from pricing research are implemented?

A company can ensure implementation by creating training material based on the research findings, training customer-facing personnel, and establishing a process to monitor and follow up on the application of these insights.

What role does training play in the implementation of pricing research?

Training is essential to prepare employees, especially those in customer-facing roles, to understand and act on the findings from pricing research. It helps bridge the gap between market insights and company actions.

Why is it important to understand non-buyers in addition to current customers during pricing research?

Understanding non-buyers is crucial because market growth often comes from converting non-customers. Their motivations and barriers to purchase can provide valuable insights for strategic pricing and marketing decisions.

How often should a company repeat its pricing research?

Pricing research should be repeated periodically, such as every year, two years, or three years, depending on market dynamics and the company's turnover, to account for changes in the market and the effectiveness of implemented strategies.

What are the potential benefits of acting on pricing research for a company?

Acting on pricing research can lead to significant growth, such as doubling in size over a few years, becoming a market leader, and improving the company's financial performance and shareholder value.

Why might conducting pricing research be a waste of resources for some companies?

Conducting pricing research can be a waste if a company is not willing to embrace the changes suggested by the research findings, as it requires adaptation and implementation of new strategies.