PRICING & PACKAGING

Defined as “establishing a monetary amount which represents the overall value of your product to the marketplace and delivering your product tailored to the needs of the target market;” pricing and packaging are critical elements of any business organization.  Far more than a simple value set against market competitors, pricing and packaging is also a value indicator in the mind of the consumer.  Determining the optimal pricing and packaging combination for your company or product can be a daunting task where much of the future profitability of the firm comes into question.  Hexagon^EC, through years of experience developing and implementing pricing and packaging models, has identified the six facets which should be balanced to reduce risk and achieve the desired results.

Establishing a fair price and package structure for a product requires a complete business and market view.  Elements of fixed and variable costs combined with product costs create a standard base upon which to generate price and package combinations; however, simply deciding on a target profit margin for each unit sold may undercut the product potential.  Focusing not only on costs, but also on value provided to the market is a critical facet of ensuring product pricing is not leaving money on the table.  Often companies are too close to their own products and do not truly understand the value they are providing, which is where Hexagon^EC can be of assistance.

Applying our HS³ process, Hexagon^EC works to understand the product and market and derive the true value to the marketplace, before developing a pricing and packaging model.  Because we are an independent company we have the ability to collect data commercial companies can not – providing us with the opportunity to develop a multi-faceted view of the market needs.  Calculations which result in actual monetary savings to companies are conducted as well as an analysis of future trends which result in a complete pricing and packaging picture for our clients.

Hexagon^EC has identified six facets of pricing and packaging which any organization interested in optimizing their revenue and profit margins should consider.  These areas are identified in the mouse over image on the right along with a small sample of the solutions Hexagon^EC offers.  Please contact us for a complete list of solutions or a customized project at: firststep@hexagonec.com