Price analysis / leakage

The power of pricing is well known

The power of pricing is well known. A small increase in a company’s actual earnings can have a substantial effect on bottom line results. If you have confidence on what prices that contribute to the profitability and what prices that are strategic you can more easily negotiate the price towards the customer. Also change customer behaviour example when ordering in small lots/orders or buying products that are unprofitable when there is a product that is similar (and fulfil the customer need) but is more profitable. You can also calculate and steer towards optimizing modularization of products. Getting the customer to buy products that are bought by other customers (or contains articles that are used for other sales). Instead of selling and keeping customer unique solutions (when there are other options).

Price leakage

To identify price leakage in pricing and to manage it, can have a big impact on profitability, i.e., costs affecting the pocket price. The challenge is to develop – and to implement – a model that actually works in practice. Our solution and experience of Price waterfall analysis can make your earn more money with little effort   At Astrada, we believe in the power of analysis, by means of profitability simulation, pre-costing and post calculations. Therefore, we have developed Astrada5 – an easy-to-use tool that supports all steps needed for producing profitability information, as well as methods for analysing the information.