They are more efficient in terms of time to quote and traceability of decisions as well as more precise than usual spreadsheet models based on average cost plus margin because they predict profitability by shipment and customer' willingness to pay.
Predicting Willingness to Pay
Find out how market research and data science show that customers have different willingness to pay (WTP) and that many customers are more sensitive to value than price.
Time To Challenge Your Pricing Model
Sales teams often offer aggressive discounts to close contracts, resulting in an unnecessary dilution of margin. Conversely, some profitable deals are lost due to an inflexible application of the discount policy.
Dynamic pricing is relevant to optimise the utilisation of fixed capacity in situations of variable demand.
Its principle is simple: increase prices where/when demand is higher than capacity and use price incentives to increase demand where/when capacity utilisation is low.
Price Optimization to Survive in the Digital Age
In the digital age, data is ubiquitous, and everything changes very quickly. These mere observations lead to two imperative changes for pricing: speed and accuracy.