Price Setting – Nonprofit Medical Organization

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Case Study: Price Setting – Nonprofit Medical Organization

Challenge: A not-for-profit medical organization was adding a new product to an existing product line and sought expert advice in developing a pricing model for this new product.

Approach: Wiglaf Pricing analyzed customer sales data for the nonprofit to understand purchasing patterns of existing goods and determine the potential demand for the new product. Using the exchange-value-to-customer methodology, Wiglaf Pricing designed a price structure for the new product that sought to maximize revenue for the firm and encourage customers to purchase the new product offering. In studying the customer data, Wiglaf Pricing had insights into the added value of this new product and the additional profit this value could capture.

Result: The nonprofit medical organization accepted and moved forward with the recommended pricing strategy with alignment from members from the marketing, finance, and sales teams and agreement from the managing director. A main goal of this strategy is to encourage customer loyalty without diluting revenue from existing product lines to boost sales and increase profits.