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Case Study: Increased prices 50%

Company: Five-person, seventeen-year-old company

Situation/problem: Company was struggling to make payroll. They had finally developed a product, which they felt could be sold for $8 each. This yielded $4 in gross margin, but this made things tight, financially.

Efforts: Performed a market assessment and pricing research. Helped company realize their product was worth more in the marketplace than they thought. Coached the principals through a process by which they could assess customers’ perspective on pricing. Mentored principals with the analysis of resultant data – to show the real value of their product.

Results: Enabled company to increase pricing 50% from $8 to $12 per unit, thereby doubling client’s profits (from $4 to $8 per unit). Additional gross profits: $200K. (Effort took less than a month.)


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