DON’T LEAVE MONEY ON THE TABLE
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Strategic Pricing
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Pricing that reflects full product value, delivers maximum acceptable ROI and is justifiable relative to competitors
Setting pricing that reflects full product value requires an in depth understanding of the quantified benefit the product delivers to the marketplace. It means knowing how, and to what degree, it impacts customer KPIs, and how it measures against their payback and ROI thresholds. Pricing that delivers maximum acceptable ROI to your bottom line means setting price levels that are not too high or too low relative to your product’s value to the marketplace and your customers’ next best options. Finding that pricing “sweet spot” is what delivers optimal profitability. Justifiable pricing suggests the ability to logically explain your pricing to customers. It must make sense given their value equations, internal measurements and available options. |
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Revenue Optimization
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Real-time management of product price, demand and availability in order to maximize profitability over the long-term
The science and art of optimizing revenue begins with the ability to accurately forecast demand and how it varies over time; then developing real-time strategies that adjusts prices and product availability in a manner that maximizes return. The objective is to sell the right products to the right customers at the right price at the right time. Statistical modeling is often the best tool for integrating these multiple variables into the complex mathematical equations required to successfully implement revenue optimization programs. |
