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