What at first may seem like an optimal pricing structure can look very different when taking into account a competitor’s reaction. In this article, the authors present a case study that analyzes the importance of considering competitors’ reactions when a price-leader is planning to optimize its portfolio pricing.
In this article, the author examines changes in how technology has been used as a force for change in pricing in the recent decade, and explores the current technology shifts in pricing technology are focusing on defining value drivers through price and margin optimization. With more than a decade of pricing experience, author Robert Irwin works on implementing and automating pricing processes, strategies and margin optimization. He can be reached at rirwin@vendavo.com.