Our approach to pricing

At Medis Consulting, we like to do a lot of pricing analysis.  Price is one of the key things in launching a product that you can really get wrong.  You can also get it right, but exactly right is a difficult thing to ever know. 

We are not experts at highly quantitative, statistically tested pricing research.  There are folks that do that, although it’s largely driven by access to a lot of data or willingness to put together a very large sample, plus a good statistician to manage all of the math.  We certainly know some good statisticians, but it’s just not something we think we can do better than others can.  The challenge with statistical validation on these large samples is that they appear to provide a concrete number, but the same subjective issues cloud the results that impact smaller samples – honesty, failure to take other variables into consideration, and normal research bias.  We’ve used methods to minimize this, such as ‘wisdom of crowds’ or weighted Juster Scales, but add up a lot of variable pushing into different directions and you’ve already created a margin of error that makes your statistical validity meaningless.

 Our preferred methodologies run from qualitative to semi-quant and quant.  The choice depends on the timing, situation, and budget.