3 Ways Businesses Can Optimize Prices in 2024

As 2024 progresses amidst global uncertainty, businesses face significant challenges. Recent years have witnessed escalating costs and diminishing profit margins, prompting frequent price increases, often occurring multiple times annually. Despite this, businesses have increasingly embraced robust price management protocols. However, the volatile global economic environment persists. How can enterprises leverage this enhanced pricing discipline to optimize their position within the current landscape and achieve success in 2024?

Take Action Despite Economic Uncertainty

When the economy is unstable, businesses have a tendency to postpone actions. With uncertainty surrounding the state of interest rates, demand, competitor actions, geopolitics and more, we see many businesses delaying making any decisions regarding pricing, choosing to pause and wait for more consistent information before acting. This defer often leaves companies worse off…compounding future price increase goals.

Consistent periodic price management is the key to boosting profits and managing customer expectations, and that requires regular planned action. Businesses should take steps to gain more perspective and inform their decision-making process to effectively manage their prices. Despite economic uncertainty, savvy businesses can use the data that is already available to them to understand their risks and opportunities.

Insights into a company’s position in the marketplace, their customer base, their value position, and the status of their competition is attained by:

Gathering customer feedback through interviews and surveys
Web scraping
Analyzing sales data

This data will empower businesses to make informed pricing adjustments that will improve their performance and financial outlook.

Develop a Value-Based Pricing Strategy

In a typical economic environment, businesses increase prices in areas where they’re value-advantaged while they adopt more moderate price changes in areas where they’re less differentiated. However, in the years since the COVID-19 pandemic, we’ve seen prices increasing across-the-board. This has produced an unusual dynamic, making it difficult for businesses to navigate pricing strategy and position themselves amongst the competition.

Now, we’re beginning to see a re-emerging importance of value-based pricing strategies. With reliable data, including primary research and competitor analysis, companies can build a pricing strategy that makes the most of their value-advantaged products and position prices to maximize profits. Now is the time to bring prices back into alignment with the value of the products and services offered, creating a strong foundation that positions those companies for success as the economy begins to improve in the future.

Develop a Winning Pricing Strategy in 2024

To find success in 2024, businesses need to determine their value positioning in the market and leverage reliable data to inform a comprehensive value-based pricing strategy, incorporating consistent price management along the way.

Through primary research techniques and advanced analytics, Iris Pricing Solutions can help you re-establish your value-based pricing discipline and equip you with the insights necessary to make strategic pricing decisions and successfully navigate the 2024 economic landscape to meet your business goals.