Product Development & Managing Lines
EZB Consulting product and pricing strategies explore various methods to produce the optimal price for your products. We review your cost structure in determining optimal price. In our product and pricing strategies we may suggest to change the shape of a product’s demand curve and even rotate the demand curve to maximize profits.
Our product and pricing strategies will suggest a variety of ways to create a lasting competitive advantage using pricing and product designs. Our main goal is to work with your team to maximize profits. Our approach to profit maximization is to closely understand both supply and demand considerations. In other words, if we want to maximize profits successfully, the first thing that we need to know is what consumer demand is like and secondly what your cost structures are like.We will help your firm manage pricing and product line design decisions. Potential competitor responses or new competitor arrivals will be factored into the firm’s original decision:
1. Extending the Product Line – We will help you make the decision to introduce a new product in response to entry by a competitor. We will guard your firm against cannibalization, determining whether one cost of introducing a lower-quality product into your product line will appeal to some of the customers who previously paid more money for your high-quality product.
2. Product line pruning is the concept of removing some of the products from your product line in response to competitors or entry by a new rival. We will help your firm analyze, “To maximize total profits, do I really want to keep all the products that I have?”