Business services

Companies have a tendency to set their prices too low in the business market. Whatever the aim of the pricing policy, some customers end up paying a price that is not justified by the amount they buy or the costs that they are responsible for. And that is perhaps putting it mildly. This means that, year by year, you are losing turnover and margin.

In many cases nobody realises that the customer is paying too little and if a company does pick up on it, it fails to tackle the problem decisively.  So how can you make sure as a company that you are not setting prices that harm your business? Most importantly, if closer examination reveals prices to be too low, how can you correct them without alienating the customer or demotivating sales staff?

In the course of our work with business clients over the last few years, we have developed a successful method to tackle exactly this problem. Because an adjustment to prices that are too low has a direct impact on the profit margin, you can often achieve a considerable improvement, in our experience up to 1-3% of turnover.

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