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Advanced analytics & price setting

Determining profit-maximising prices for products and/or services

diagram - Advanced analytics & price setting

Organisations with World-Class Advanced Analytics & Price Setting Competencies:

  • Routinely conduct detailed pricing & profitability analytics on historical data to understand performance and its drivers at the transaction level
  • Have pricing structures and levels that are consistent with broader business goals and constraints
  • Incorporate an understanding of variations in both underlying cost structures and customers’ “willingness to pay” across geographies, products, distribution channels and customer segments
  • Predict the impact of price changes on business volume and benchmark actual performance relative to those predictions
  • Use predictive modeling to improve profitability by focusing on key profit levers such as pricing, customer retention and collections effectiveness

 

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  • Becoming a profit optimiser
    Price optimisation in the automotive aftermarket