Costing, Pricing and Market Analysis
For more information,
contact Kelly Eakin.
To flourish in today's immensely competitive markets, businesses need strategies for pricing differentiated products for a wide range of market segments. Christensen Associates provides a unified, cutting-edge approach to understanding and measuring costs, customer value, and risk; these are the three key ingredients for successful pricing strategies. Currently, we estimate that 50% of the U.S. fixed bill product market represents our work. We also have extensive knowledge of regulatory environments for costing and pricing in various industries, and staff who have served successfully as expert witnesses in numerous regulatory hearings.
A detailed knowledge of product costs is needed for competitive pricing strategies, investment planning, and product unbundling. Christensen Associates' proficiency in understanding cost structures is based on more than 25 years of experience. We have pioneered groundbreaking approaches to cost analysis, including flexible econometric models and cost estimation for large networks. Our cost analysis tools include:
- economic-engineering models
- econometric models
- incremental cost estimation
- marginal cost estimation
- wholesale price forecasting
- surveys to support cost models.
Pricing strategies for both existing and new products also require an understanding of customer value and market structures. Christensen Associates is an industry leader in measuring customer response to changes in price structures, as well as an innovator in modeling customer choice of products and suppliers. Our customer analysis tools address:
- customer choice
- customer price response
- market segmentation.
Businesses must be able to identify and capitalize on their comparative advantages in the marketplace. All strategies have risks; success requires that risk be measured and managed effectively. Our risk analysis tools address:
- volatility and value-at-risk
- hedging strategies
- portfolio analysis.
Knowledge of customer value, product costs, and market risks provides the building blocks for designing successful market strategies, services, and products. These strategies apply to both competitive and regulated businesses. Our market strategy services include:
- demand and supply modeling
- cost-benefit analysis
- product profitability analysis
- product line pricing.