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Portfolio pricing optimisation

Pricing is a more complex game when there is a portfolio of multiple products in the same category because cannibalisation profoundly impacts contribution margin. Furthermore, the complexity increases as the number of SKUs increases, and the approach to pricing 1000s of products would be totally different than 10s of products.

Portfolio pricing would involve a mix of the following four analyses depending on the context:

  1. Product segmentation to group products with similar pricing phenomenon to reduce pricing complexity

  2. Measurement of cross-elasticity effects among the products including cannibalisation and complementary effects

  3. Feature optimisation of existing products to drive value creation and consequently the pricing power

  4. Portfolio pruning (or rationalisation) to remove some of the unattractive SKUs/products

To help businesses optimise portfolio pricing, Pricing Stratz possesses the in-depth know-how to:

  • Bridge any data/information gaps

  • Apply basic and/or advanced analytics to maximise the contribution margin of the entire portfolio

  • Test the new strategy with real customers and/or prospects

Case Studies

Contact Information

We are based in Dubai with clients in the US, Canada, UK and France

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