Pricing Analytics

Article archives from the Pricing Pricing Society

Understanding Price Elasticity Models: A Comprehensive Cutting-Edge Guide

Price elasticity models provide valuable insights into consumer behavior and market dynamics. By quantifying the responsiveness of demand to price changes, businesses can develop more effective pricing strategies, optimize promotional efforts, and drive revenue growth with dynamic pricing. Understanding and applying price elasticity concepts empower businesses to make informed pricing decisions in an ever-changing marketplace, as the author explains.

Using Conjoint Analysis to Answer Strategic Questions: Pricing Events

During Wiglaf Pricing's Pricing and Profit Management Winter ’24 Tour, the company asked attendees to fill out a marketing survey. In this article, the author reviews the initial survey results and the conjoint analysis that he conducted to provide deeper insight into the respondents' customer preferences.

By |2024-05-24T15:20:33+00:00April 30, 2024|Pricing Analytics, Pricing Articles, Pricing Research|0 Comments

Repricing Analytics in Difficult Trading Environments

In recent years, globally significant events have dramatically impacted supply chain related costs obliging many businesses to substantially increase their prices. The magnitude of price adjustments was so unprecedented that many organizations lacked the necessary experience to manage their offerings effectively in rapidly changing market conditions. This resulted in some companies failing to increase prices sufficiently, foregoing profit due to fear of lost sales, whilst others hit an inappropriately high price-point, to the detriment of sales. Many businesses ended up in a bedlam of distorted value propositions, incomprehensible price structures across markets and channels, and hence sub-optimal market competitiveness. Now, as the economy and markets start to recalibrate, there is urgency for businesses to rationally revisit pricing. The current article discusses some of the price analytics that could help on the way. They could form, as the author explains, a formidable basis for the application of AI – based pricing.

Power of Pricing Analytics in Retail and E-Tail Decision Making

For retail and e-tail businesses, there are significant benefits to working with pricing analytics experts who have high-level pricing analytical skills and can use a company’s data to inform pricing and create new pricing opportunities, especially in the areas of e-commerce and competitive intelligence. In this article, the author presents best practices for applying pricing analytics tactics to large, dynamic retail businesses which can be used by pricers operating in these markets.

Net Revenue Retention Impacts the Value of Your Company

Earlier in November, TechCrunch published an article entitled: “What’s the right NDR target for SaaS startups? And why pricing could be key to moving the NDR needle.” In this paper, the author, who publishes frequently on the topic of Pricing and NDR (Net Dollar Retention or more generally NRR for Net Revenue Retention), explores some of the key points from the article and adds some further thoughts on how pricing and packaging strategy are central to growing NDR. Pricing and NDR is a critical theme for pricing professionals as we go into 2023, as the author explains.

By |2022-12-27T22:12:31+00:00December 31, 2022|Pricing Analytics, Pricing Articles, Pricing Strategy|0 Comments

Price Walls and Demand Curves in Pricing Strategies

In this article, the author explains the concept of price walls – psychological price points where small price changes generate significant changes in sales volume and revenue – and why they – as well as understanding what an actual demand curve looks like for a specific product or product, family, or service – are critical components for developing a successful pricing strategy.

By |2022-12-27T22:04:45+00:00December 31, 2022|Price Elasticity, Pricing Analytics, Pricing Articles|0 Comments

Don’t Underestimate the Strategic Value of the Humble Volume Hurdle

Using the standard volume hurdle equation allows a pricing professional to calculate the volume hurdle required for both price increases and price decreases. However, this volume hurdle analysis only considers pure price changes, where nothing changes but the price. It does not take cost changes into account. In this article, the author explains how to expand this equation to account for changing costs, which is a critical consideration for pricers in the current economic environment.

By |2022-11-07T23:18:52+00:00September 30, 2022|Pricing Analytics, Pricing Articles, Pricing Research|0 Comments

Data Is Ubiquitous – But Are You Using It Right?

Even in today’s digital world in which data about customers, their purchasing behaviors, price sensitivities, and buying experiences is readily available and consistently updated, making important pricing decisions can still be difficult. If your data is inaccurate, dated, or incomplete, your tactics won’t be as effective and you might miss out on potential prospects, as the author explains.

How to leverage Loss Aversion/Prospect Theory for pricing negotiation

In this article, the author explains the psychological phenomenon of “loss aversion” and how it can be applied in pricing strategy. Raymond Augustin is a recognized thought leader, specializing in pricing strategy. He has, as the COO of Virtual Procurement Services (VPS), provided guidance to dozens of healthcare organizations and tribal gaming operations on purchase price methodology and analytics.

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