pricing analytics

Article archives from the Pricing Pricing Society

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.

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

When to Price Predictive Analytics

Many companies are adding some form of predictive analytics to their offers. This is true across all sorts of businesses that collect a lot of data in the normal course of operations. At the same time, the rapid advances in machine learning since 2007 have made it much easier to develop predictive learning applications, and many companies are rushing to take advantage. But how do you package and price this new functionality?

By |2022-05-14T14:12:02+00:00January 31, 2021|Pricing Analytics, Pricing Articles|0 Comments

Method to Determine the Income Forecast for the Sustainability of the Profit Margin, the IFSPM Method

In this article, the author presents a methodology for accurately projecting sales budgets. Specifically, the methodology presents a series of five equations that can be used to determine the income forecast necessary for the sustainability of current profit margins, which the author calls the IFSPM Method. Examples are provided to demonstrate the methodology’s applicability in both project and service-driven businesses.

Conjoint Analysis Supporting Price Decisions

While there are other research techniques that seek to understand the perceived value of products or services, the Conjoint Analysis method indirectly addresses the customer and therefore bypasses biases from direct research methods that make it harder to correctly model consumer choice behavior. In this article, the authors examine the benefits of Conjoint Analysis in developing pricing strategies, present several methods for applying this approach and review case studies of successful pricing projects.

By |2022-05-14T16:08:14+00:00October 31, 2019|Pricing Analytics, Pricing Articles, Pricing Research|0 Comments
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