Through the last 18 months, unit sales of golf equipment and apparel have been constrained by supply chain and transportation issues, limiting sales potential, and negatively impacting profitability. If a company’s sales are limited by how many sticks, dozens, pairs, or pieces they can procure and ship, what could be more important than maximizing the price you get for each, and every item sold?
Every organization has multiple levers they can pull to boost the bottom line, and some of the most frequently used are:
1) Reduce overhead. However, in a period of rapid growth like we are currently experiencing, most companies are adding people and processes to expedite and work within the current financial frameworks.
2) Reduce product costs. In an environment where most brands are hard pressed to meet demand, reducing component costs is improbable.
3) Sell more units. If supply is constrained, selling more units is nearly impossible.
4) Increase unit pricing of the product or service. And this is where the Golf Datatech/Atenga Predictive Demand Pricing research can provide insights that maximize not just sales, but also profitability.
Pricing is the hottest new research niche, and Golf Datatech/Atenga’s Artificial Intelligence-driven platform provides improved accuracy and allows for rapid interpolation of raw data. Utilizing Golf Datatech’s Serious Golf Database of over 40,000 active and avid golfers, we can significantly reduce both the cost and turnaround time of a given survey to 4-5 weeks instead of months. More importantly, this real time relevancy means that what was once viewed as an academic endeavor by insulated staffers, is now a key operating tool of brand champions with P&L responsibility.
Understanding Price Walls
The latest pricing research technology not only showcases the optimal price point for both profits and revenue, but also highlights potentially dangerous price inflection points or “price walls”. Identifying and understanding price walls is critical to maximizing sales and profitability. Push too far with a price increase and unit volume may plummet. Leave a price below the optimum and you are leaving profits on the table for others to scoop up. Or they may just go unrealized.
There is seldom a direct dollar by dollar relationship between unit price and unit volume. Rather, there are price plateaus that occur where unit sales remain relatively steady, while unit prices increase up to a point. At that inevitable inflection point, even the slightest increase in prices can push a specific product into an abyss where unit volume drops sharply.
Price walls are unique to every brand and additionally within each product’s life cycle, which is why they need to be measured frequently by brand and product category.
The best situation is that in a supply constrained environment, price increases are “sticky” and will hold even after output is increased. Quality, well positioned products, and services attract loyal customers who tend not to be as price sensitive. Companies with strong Net Promoter Scores (NPS) are exceptionally good candidates to successfully raise their prices.
Maximize Sales with Minimum Risk
A Golf Datatech/Atenga Pricing Demand Analysis additionally provides significant insights into how various product attributes and brand positionings will affect golfers’ views of your brand. Whether your company makes and sells balls, clubs, shoes, gloves, apparel, bags, trolleys, distance devices, tee times, custom fitting sessions or any other goods or service within the golf industry, a Predictive Pricing Demand Analysis will allow you to maximize sales and profits and minimize the risks associated with making an incorrect decision.
Leading edge pricing research platforms can take much of the guesswork out of the critical question of “how high is too high”? Golf Datatech/Atenga Insights are at the forefront of the pricing research revolution within the golf space. Atenga has completed close to 1,000 projects involving clients of all sizes and product categories, in some fifteen countries. And in an acknowledgement to how successful and well received these programs have been, about half of all clients undertake follow-up or create semi-annual projects.
Pricing research is indeed a pragmatic business practice today when supplies are tight during these unique times.
Robert Tinterov – CEO Atenga Insights Partner
Stockholm/Los Angeles Robert.email@example.com
John Krzynowek – Golf Datatech
Kissimmee, FL Jkrzynowek@golf-datatech.com