Let’s take a moment and consider one of the more interesting of the pricing models – the auction. And to see this model at its full potential, we’ll want to analyze the real world example of the company that got auctioning right, and is currently leveraging it to pull in billions of dollars every quarter: [...]
Let’s say I have an idea for a new product I want to take to market, and I want to understand (naturally) what the price points for this particular product might be. Let’s pretend further, for the sake of having an example, that my new product is a fiction book. I may say to [...]
Recently Netflix raised it prices 60% for many of their subscribers. While I do not have insight into their financial model or how that will impact profitability, I think the price increase was a mistake for the following reasons:
Your CEO asks you to increase profitability. First, find your profit levers.
Visual analytics is a great way to uncover insights in complex financial data while highlighting opportunities for improvements. A quick way to visualize profitability is by using the Client Profitability chart. This chart quickly highlights and orders clients by margin as well as contribution to total profits. The chart clearly shows the unprofitable clients and [...]
We are now ready, having performed a historical analysis in part 1 of this post, to create a useful system for pricing. Depending on how comfortable you are with statistics and mathematical operations with standard deviations, you may or may not understand why the excel formulas are set up the way that they are. A [...]
Pricing is perhaps one of the hardest aspects of marketing to get right. And even though it’s impossible to keep control over and measure all of the variables involved, using analytics can help you track and predict enough of those variables so you can set the price where it needs to be. Here, we will [...]
