Online retail in Australia is growing fast. An efficient pricing strategy is key to success in e-commerce and prices need to be managed in a dynamic and flexible approach.

Our client required assistance developing a new pricing structure that removed significant complexity and provided incentives to drive preferred customer behaviour.

We were engaged to integrate a holistic pricing structure under the one brand and to develop a plan to systematically introduce this structure for each customer segment.

An increasing trend towards digital media consumption was leading to declining newspaper readership. The fast developing tablet application market represented a host of challenges in monetising digital content.

Value based pricing is a concept supported in most businesses - however the reality often falls far short of the rhetoric. The promise of well executed pricing strategy is substantial - the potential margin increase is typically 2-4% of gross sales. However, inability to execute on the promise of value based pricing often arises from a practical inability to understand what ‘value' really is, and a lack of experience in capturing this value through price management.

As little as a year ago, a company's main pricing strategy concerns were managing the annual price increase cycle, reducing value leakage and ensuring net prices were aligned to customer value and strategic considerations. Now there is incredible pressure for price reduction (encouraged by less disciplined competitors), a blow out in accounts receivable and a salesforce driven to holding volumes at all costs in the face of a shrinking market.

Performing quantitative and qualitative research to understand the customer value proposition and price elasticity of customer segments; then applying a practical filter to understand customer, competitor and regulatory reaction.