Over time, companies tend to grow to a level of maturity that sustains profitability and marginal revenue growth. Management tends to become risk averse for fear of changing the status quo causing irreversible harm on market share, revenue and profitability.
As President of the Strategic Pricing Marketing Group, I’ve noticed one thing over my 17 year tenure in Pricing Consulting. It’s that every company underutilizes at least one of their value advantages to tactically enrich the top line through price customization. E.g. Swiss Chalet QSR Restaurants.
When I was asked to review their most popular quarter chicken dinner, I proposed an idea of charging more for while meat vs. dark meat. At first, the company resisted but relented after conducting primary research that proved not only that white meat was perceived by consumers to be more healthy, but better yet where willing to pay a premium. As such, the company changed their value and pricing strategy by offering 2 distinct prices for the quarter chicken dinner and realized upside benefit of millions of dollars from just one price-value idea.
For Swiss Chalet, this idea was their MASPI!