Price has a massive impact on your business. When setting your prices you must make sure that the price and sales levels you set will allow your business to be profitable. You must also take note of where your product or service stands in comparison with your competition.
Price optimisation is the process of finding that pricing sweet spot, or maximising price against the customers willingness to pay. Companies up and down the supply chain, both in B2B and B2C settings, rightly dedicate a massive amount of time towards price optimisation to ensure that their products will sell quickly at the right price while still making a decent profit.
Topics: Price Optimisation
On Wednesday, Philip Huthwaite BlackCurve CEO and Co-Founder, participated in a Twitter chat to discuss the "Importance of Price Optimisation" with members of the pricing community.
Topics: Price Optimisation, Pricing Trends
Yield management is the process of understanding, anticipating, and influencing consumer behaviour to maximize yield or profits from a fixed, 'perishable' resource, such as hotel rooms, tables in restaurants, theatre tickets, airline seats, media, telecommunications and energy, to name but a few. The idea is to coordinate timing, price, and consumer buying patterns to achieve the best return.
Topics: Price Management, Price Optimisation, Yield Management
Your Priority should be Profitable Growth not Higher Prices
Posted by
Moira McCormick on August 10, 2016
Do you have a conflict in your business between the pricing team and sales department? Certain members of your sales team probably think that all your pricing manager cares about is higher prices – which can make it more difficult for some in sales to close deals.
Topics: Price Optimisation, Profit Maximization
Any business wants to maximise profits by pricing their goods and services at the right level. Traditionally for many businesses price management has been conducted using Excel spreadsheets to calculate optimum prices – and to convey these prices to all concerned in the sales process.
Topics: Price Management, Price Optimisation, Pricing Solution, Pricing System, Price Engine
Price discrimination
is a pricing strategy that charges customers different prices for identical goods or services according to certain criteria. In pure price discrimination, the seller/provider will charge each customer the
maximum price they are willing to pay
. In more common forms of price discrimination, the seller places customers in groups based on certain
attributes
and charges each group a different price.
Topics: Price Optimisation, Gender, Pricing Elasticity
What the Textbooks Don't Teach You About Price Management
Posted by
Moira McCormick on March 15, 2016
Students of economics are taught that a business maximizes profits by producing up to the point at which marginal cost equals marginal revenue. This is true in theory - and actually irrelevant in practice.
Topics: Price Management, Price Optimisation
We hope your Christmas was a good one, but now it's back to work for the New Year with (here's hoping) renewed intentions and impetus to improve those margins. Unfortunately there are no quick fixes, "no work, no pain" will not boost your margins. It will require major strategic changes, but if you're truly serious about becoming more profitable, then read on.
Topics: Margin Growth, Pricing Success, Pricing Software, Price Optimisation