Pricing is perhaps the most visible & high impact lever on the bottom line. However, given the risks associated with weakening consumer demand function and adverse competitive reactions, many a times, pricing decisions back fire and hurt profitability. Also, common in the business place, are opportunities that exist for brands to charge a premium that often go unutilized, literally leaving money on the table.
The crux of pricing analytics is to enable the organizations to maximize profit. However, pricing analytics is not a one size fit all solution across industries and business scenarios. Depending on the business situation, various kinds of pricing analytics will need to be employed to create value for the client:
- Historical pricing impact analysis
- Developing Segmented pricing models
- “What if” Scenario planning for pricing and evaluating impact on
- Dynamic pricing across various consumer segments
- Demand curve estimation across product segments
- Pricing optimization models across portfolio – to manage conflicting objectives (Volumes/Profit/Market Share)