PriceAgent is a pricing intelligence software that helps companies determine in close to real time the optimal price points for operating profit and gross revenue. PriceAgent also identifies the exact location of specific and significant abysses along the X/Y volume and price axis called Price Walls and stagnant price zones called Price Plateaus.
There are three ways for companies to increase the bottom line: 1) reduce product costs, 2) sell more units and 3) increase unit revenue. Of these the third is the most significant as all the incremental increase falls directly to the bottom line. Indeed according to research just a 3% increase in price will for the average enterprise increase operating profit by almost 25%. That’s nothing more than increasing the price from $33 to $34 or from $484 to $499.
PriceAgent is a new service developed over the past three years by Atenga Insights, a leading pricing research firm based in Stockholm with a US office in Los Angeles that has successfully completed some 1000 pricing projects for companies in Asia, North America and Europe.
Several, including which product benefit will drive the highest price or insights on when a customer prefers to use your product, or where they prefer to purchase it from. For instance is it the customer group on FaceBook willing to pay a higher price than those on Instagram. It can even help companies determine which product attribute will provide the most lift in unit revenue. It can also identify which core demographic will pay the highest price and how product price varies by season, geography and sales channel.
Many pricing research companies look at existing competitive pricing and utilize datamining in determining the optimal price point. We believe this is an archaic backwards process especially since so many competitors could be “winging” it on price. In essence you could be basing your critical pricing decision on a competitors sloppy decision making process PriceAgent uses real time predictive demand algorthymic analysis to determine what a customer will pay.
PriceAgent is the SaaS evolution of Stockholm-based Atenga Insights which has performed some 1,000 different pricing projects for all sorts and sizes of clients across the globe. About one half of our projects resulted in encore surveys and in some cases as many as six different projects across multiple divisions. In not a single case did a Client reject the results or claim the work to be inaccurate.
Companies that want to increase prices for their existing products or services without losing customers can use the following strategies: – Examining different markets in order to find a willing buyer with a higher budget. – Knowing your product’s dynamic compared to other products on the market and pricing accordingly. – Identifying which marketing messages are most effective for reaching potential buyers, and using appropriate channels.
How do you know which market segments are most willing to pay for your product or service? When there is a problem with your product, and you want to fix it. We can help you find out what would make customers buy the product and at what price. This information will help you maximize profits in the long-term. Also, when considering an upgrade to your service, we can determine if there is actually a need for it and how much extra money customers are willing to spend on this upgrade.
PriceAgent Utilizes the same method that was developed for many years in Atenga Insights. There, we made enhancement to the popular Van Westendorp Price Sensitively Meter (PSM); the questions are asked in context of purchasing. These questions are also dynamic and can change with specific respondent The analytic side of the PSM is also enhanced, leading to at least an order of magnitude better precision of the results. To achieve this, we developed our own software which we call our Predictive Demand Engine™. The use of proprietary software also substantially speeds up the analytic process and reduces cost.
We use survey panel companies to recruit respondents to complete the survey. With realtime access to +300m respondents in over 130 countries. These panel companies provide us with online databases of individuals who agreed to take online surveys for cash compensation. There are survey panel companies focusing on consumers and survey panel companies focused on specific B2B markets.
These companies have a detailed understanding of each member in the panel, allowing us to focus recruitment on panel members with a specifically desired profile. These respondents are led through a number of qualification/disqualification questions at the beginning of the survey to further ensure that only respondents that meet the desired profile can complete the survey. In post-processing we then use a number of processes to weed out respondents who do not answer the questions truthfully. Among respondents initiating the survey, typically 40% – 60% are disqualified by the qualification/disqualification questions and a further 10% – 15% disqualified by the post-processing. What remains is a statistically significant number of respondents that we can trust.
Several, including which product benefit will drive the highest price or what product name will have the most impact. For instance is it preferable to have a brand prefix UA or United Airlines. It can even help companies determine which celebrity spokesperson will provide the most lift. It can also identify which core demographic will pay the highest price and how product price varies by season, geography and sales channel.
Many pricing research companies look at existing competitive pricing and utilize datamining in determining the optimal price point. We believe this is an archaic backwards process especially since so many competitors could be “winging” it on price. In essence you could be basing your critical pricing decision on a competitors sloppy decision making process. PriceAgent uses Ai and real time predictive demand algorithmic analysis to determine what a customer will pay.
There are a very few but nobody goes deeper into the pricing variables and focuses first and foremost on pricing like PriceAgent.
Generally speaking European companies enjoy a “home field advantage” in their native
market. Swedes for instance will look favorably towards purchasing a Volvo and people in France will give strong consideration to a Club Med for a vacation trip. So its important for European companies to understand the boundaries of this provincial advantage. Given the immense size of the US market there are many more native providers and companies tend to focus first on volume increases versus unit revenue.
PriceAgent offers a three tier approach with the most popular option priced $2,995. The pricing levels are determined by the number of survey respondents a client wishes to pool in a given month, the number of surveys engaged and the number of specific overall queries.