Our pricing work revolves around aiding organisations in their efforts to set prices right, be aware of where they are relative to competition, look at markdowns and their impact, and benchmark deals.
Our work in the field of pricing, spans on establishing variance in realised revenue from the ideal scenario, hence understanding profitability at a grand level. We also cover relative price points, demand elasticity measures and optimisation to establish prices that will maximise margins. Finally we look at profiling transactions, customers, stores and products to understand what is it that seems to be correlated to margin loss or profitable transactions. What segments are not price sensitive, which ones are deal seekers, which are more or less profitable.
We help analyse the impact of markdowns on volumes relative to; pricing, seasonality, promotions and so on. We then recommend where and how markdowns should be employed, on what products and when, or even at a store and customer level.
For a B2B business with a large number of deals, we use pricing methods to help analyse deals to establish target, floor and ceiling pricing. We help analyse the variance in deal pricing by deal type. We look at establishing the impact of correcting pricing to lie in the target zone for deals below or around floor pricing. We can roll up the data to understand which sales teams, territories, or products seem to have the biggest variance and margin loss, and what can be the impact of correctives.