Service pricing in a competitive environment requires both expertise in multiple methodologies and the experience and judgment to select the right method to price a particular service. JSI has expertise in traditional cost study methodologies, economic cost studies, and strategic pricing for competitive products.
For regulated services, JSI ensures that you develop rates for new services that mesh with historic rate structures, support state PUC rate designs, and design strategies to maximize service penetration. Turning to non-regulated service offerings, with JSI at your side, you can develop cost-based market prices and assess price competitiveness in your targeted markets. JSI can create break-even scenarios that allow cost-based sales forecasting and ensure that prices for competitive services meet applicable rules related to cross-subsidization or new services tests.
Bundling is one of the most effective tactics independent providers can employ to increase margins and meet competition. By their very nature, bundles reinforce your position as a one-stop-shop, and the more services customers purchase from you, the more connected they become on the convenience of a single provider. Launching a service bundle enables you to take the lead in educating customers about the benefits of your services and to highlight the service quality, customer care, and personal touch you offer as a local provider. While subscribers purchase bundles to save money, it is ironic that providers offering bundles often find that customers spend more than they would otherwise and, just as importantly, are less likely to switch service providers.
Reviewing rate rebalancing, JSI helps design plans to adjust local and access rates, coordinating with state PUC mandates and USF actions. In addition, JSI studies potential conversion to usage-sensitive pricing or local measured service (LMS), investigates conversion of flat-rate EAS to usage-sensitive pricing, and performs required regulatory actions, including tariffs, and reviews and develops alternative regulatory mechanisms.
To learn more about our service pricing methodologies, or for additional information, contact Valerie Wimer, at 301-459-7590, or vwimer@jsitel.com, or Douglas Meredith, at 801-294-4576, or dmeredith@jsitel.com.