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.
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.
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.
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.
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.
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.
Management deserves clarity from their revenue variance analysis, especially if the variance analysis is used in making compensation, budgetary, and personnel decisions. In this article, the author provides examples of best practices in performing and delivering these analyses.
In this article, Stephan Liozu, PhD, CPP, presents best practices for initiating an organizational transition towards value-based pricing.
How does competition-based pricing work? And when does it make sense to use it? In this article, the author analyzes the pros and cons of competitive pricing and its application, especially in the context of rising global inflation. In the current environment, the majority of companies will need to examine how they can increase their prices rather than drop them to match the competition, as the author explains.
Digital transformation is a broad term used to refer to significant technological changes across human resource, supply chain, customer service, marketing, and finance systems. As a company digitizes, they can increase their capability to monetize assets and optimize their existing data to better inform pricing decisions (and value capture). This in turn makes pricing a prospective part of the transformation journey, as the author explains.