Smarter Pricing: How to capture more value in your market

How to increase prices paid, without imposing a price increase

In some industries with price-aggressive competitors and markets with powerful customers, it can be extremely difficult to command price increases. It is worth challenging these pessimistic assumptions initially. If the conditions are validated, then other tactics come into play. The UK wine retailing business is ultra-competitive with price pressures from off-licences and supermarkets. Majestic Wine Warehouse increased its profits year on year, not by increasing list prices, but by persuading its customers to trade up to higher-quality wines. In 2005 their average bottle price was up from £5.40 to £5.51. Smart pricing means increasing prices paid, without putting through a formal ...