Pricing economics

Our pricing team helps companies design the right pricing strategy and set prices that achieves their strategic and commercial objectives. These objectives include: increasing customer revenues; increasing profits; increasing value to all stakeholders including wider society; and improving performance.

Pricing is the biggest profit lever available to companies and is an important tool to communicate the product and brand to customers. Getting prices wrong can have a significant impact on the bottom line. Our expert team of economists and strategists help organisations set the right prices using techniques based on economic theory that are cutting-edge, but tried and tested.

We operate as part of PwC’s Strategy& practice, drawing on the knowledge and insights of our colleagues across the wider PwC Consulting network.

Key questions we can help clients to answer

Designing the right pricing strategy

We can help you answer important questions, including: if your pricing strategy is aligned to your strategy and objectives, how to develop a pricing strategy that is tailored to your different products and customer segments and how customers are likely to react to different pricing packages.

What is the optimal pricing strategy for different products and customer segment?
How are customers likely to respond to different pricing structures?
What is the appropriate product/service to be priced?
Is the pricing strategy for one product/service cannibalising the performance of other products/services?

Setting the right prices

We can help you tackle important considerations when setting prices including: if the price of your products/services reflects the value delivered, if the prices recover the costs, how changes in the price impact demand and how to forecast future demand.

How do you measure how customers value different outcomes and different attributes of the product/service?
How do you set prices that are reflective of the value delivered to all stakeholders?
How do you allocate costs across different products/services?
How can we forecast future demand?
Which customers are contributing disproportionately towards costs?

Case studies

A football club

We helped a football club understand the potential demand for its premium seats, and what customers are willing to pay for these. We identified the composition of their customer base and the different segment characteristics to understand what features of corporate hospitality packages are valued most, and how this differs across different customer segments.

Police service

We assisted the police service in England and Wales to understand how pricing arrangements could be used to facilitate exchanging and sharing of resources between different police forces to deliver benefits in terms of better outcomes and increased efficiency. We developed recommendations for the most appropriate pricing model for the different policing capabilities and how prices could be set to achieve the objectives of each capability.

A tech-enabled logistics company

We worked with a market-leading technology company in the logistics sector to help them develop a pricing structure for a new product in a new market. Their new product was radically different to their existing offerings, so we developed a new way of pricing that better reflected the nature of their new offering, whilst also being easy for prospective buyers to understand.

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Daniel Jacobson

Senior Economist, PwC United Kingdom

Tel: +44 (0)7803 455617

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