A global central laboratory services company was considering implementing a price increase across their lab services and requested Kineticos support the development of a pricing strategy.
A critical step in developing a pricing strategy is to understand the market’s willingness to pay. To that end, Kineticos developed and launched an online willingness to pay study intended to provide the sponsor with insight into customer’s pricing perceptions for various tests, project management, storage fees, etc. Kineticos also conducted blinded interviews with several current and prospective customers, which provided insights into more anecdotal and complex customer perceptions. Finally, Kineticos performed an in-depth review of the sponsor’s historical proposal data, which illuminated strengths and gaps of the existing pricing strategy.
Kineticos identified several areas where the sponsor’s pricing was not aligned with the customer’s willingness to pay. Kineticos paired the learnings from the primary market research with the findings of the internal historical review to guide the sponsor with a pricing strategy designed to increase profit margins and proposal win rate.