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Pricing
Pricing is
often thought to be the most overlooked profit lever.
Understanding the pricing dynamics facing a company, and giving
pricing the management care and attention that it deserves, is
crucial in avoiding profit drains.
At LP, our
pricing work covers value-based and tactical pricing
opportunities.
Value-based pricing
At LP, we
believe that price needs to be based on value, not cost. We
determine how capacity, cost structure, technology, demand, price
levels, and other trends affect overall industry price levels, and
we help clients make strategic decisions that will have a positive
effect on industry prices and profitability. We also use
sophisticated research to segment markets. This enables us to
determine what price level provides specific products with a
price/benefit advantage versus the competition, while maximising
profitability.
Tactical pricing
Our tactical
pricing approach is based on detailed analysis, by product and by
customer. We use a number of tools to determine the most viable
price to assign to each customer transaction, with customer
behaviour at the centre of the analytical approach.
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