Information Services

An information services company came to SPG for help in pricing an unprofitable product. (A competitor with a similar product had just announced that they would abandon it because they could not figure out how to make a profit on it.) SPG assessed the product and the market, and using our Economic Value Estimation® tools, helped the company realize it had targeted the wrong market segments. By quantifying the product's value, SPG helped the company build a pricing structure and strategy that targeted more profitable segments. With the new pricing structure in hand, the product manager's first customer encounter earned the company an additional $750,000 in profit. Subsequent sales have also demonstrated that this product will prove immensely profitable.