Pricing strategies are a key source of competitive advantage. But for transport and infrastructure industries, pricing is not a simple matter. Imperfect markets mean that pricing is a matter for management decisions, not simply a question of accepting a market price. Many costs incurred are common to the provision of a range of services; the long-lived nature of infrastructure makes pricing decisions dependent on expectations of how demand will change over time.

Sound technical analysis is important for appropriate infrastructure pricing: analysis of costs, and of the drivers of costs, is the foundation on which pricing strategies are built. But cost analysis is not the whole story: the cost structure of infrastructure industries places limits on the range of pricing strategies, but does not determine them.

Ultimately, pricing is an instrument for the achievement of the strategic objectives of the business. Applying pricing strategy intelligently for this purpose requires an understanding of the competitive environment within which the enterprise is operating. It requires an understanding of the level of utilisation of the existing assets of the business, and the scope for increasing this without excessively diluting existing revenue. It also requires an understanding of future as well as present demand, and an appreciation of the competitive environment within which the enterprise is operating.

It also requires a careful assessment of likely customer response to any change, and the preparation of any appropriate strategy for dealing with any anticipated negative reaction.

Integrating all these considerations into a coherent pricing strategy is a complex and difficult process. This process requires consistent engagement with senior management to ensure that the full range of strategic and practical concerns is taken into account.

Benefits of using Meyrick

Breadth of experience: Our consultants include former executives who bring you extensive experience in assisting companies and government agencies throughout Australia and overseas.

Strategic and practical: Our work has earned us a reputation for developing solutions that address our clients' interests in a practical and sustainable way.

Long-standing partnerships: We value highly our long-standing relationships with our clients. We strive to build these relationships by working side by side with them rather than adopting a distant advisory position.

Committed to professional excellence through multi-disciplinary learning: Our key source of competitive advantage is our practical and analytical resources. So we continuously invest in these through formal and informal learning for all of our staff.

Some of our Projects

Fremantle Port Authority: Development of a pricing model for bulk cargo terminal

Victorian Channels Authority: Development of pricing options for a channel deepening project

Geraldton Port Authority: Development and implementation of a port pricing model

ADB Ministry of Transport and Civil Aviation, PNG: Development of pricing options for maritime safety services

Darwin Port Corporation: Review of port pricing

ADB/UNTAET: Development of a pricing structure for Port of Dili, East Timor

Ports and Shipping Operation of Iran: Development and delivery of a training course on approaches to pricing of port services

Fremantle Port Authority: Review of port pricing structures, and assistance with the implementation of a new pricing structure

Jordan Ports Authority: Review of port prices and recommendations on restructuring

National Road Transport Commission: Development of options for road user charges.

 Download a Pricing of Infrastructure brochure.