All companies have a price modelling tool. However, most of them are based purely on internal costs.
However, the client’s buying decisions are based on the value and price difference between competing offers.
A good tool should mimic the client’s evaluation criteria.
What is a Price Modelling Tool ? The Price Modelling Tool calculates the price based on client’s willingness to pay.
How is it done? The Pricology team builds a pro-forma client evaluation criteria by conducting a market study. It also identifies the value ascribed by the client to each value added offering.
Additionally client’s budget and price sensitivity estimated.
The data is analysed to create a target price. Any modification to this price is made by adding or remove the value added components of the solution.
How does it help the clients? The Price Modelling tool focuses on value based pricing and improved the over all deal profitability.
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