• Online property pricing strategies

    Online Property


    The company had recently acquired several new businesses meaning that they could provide their customers with a suite of products to fulfil their full range of needs. They were looking for a strategy to encourage existing customers from their core business to purchase these additional products. Their primary objective was to increase the average product per customer.


    Product assessment revealed the following:
    a) Low variable costs highlighted benefits of increasing number of customers served irrespective of price
    b) Low market penetration of the newly acquired business suggested minimal cannibalisation risk of lowering price
    c) Customers valued each of the products offered but were currently purchasing them through various different vendors and had little incentive to switch supplier
    The combination of these findings suggested that a bundling approach whereby discounts were applied vs the price of acquiring each product separately would encourage customers to purchase all products through our client.


    Scenario modelling suggests the average product per partner growth from 1.25 to 3.5 over 3 year horizons.