railway industry - optimal pricing
profitability, Pricing Strategies
In several consumer-oriented industries, global competition and changing purchase habits, combined with the ever-growing reach of the Internet, have created a new generation of sophisticated and informed customers who know exactly what type of product or service they want, and what they are willing to pay for it.
Whereas in previous decades products or services could be successfully designed for the general public and efficiently marketed through mass-media, today’s customers expect a higher level of customization, personalization and bundling when making purchase decisions and know where to find the provider that will better suit their need.As a result, varying customer profiles must now be dealt with and can only be reached through separate distribution channels. Properly segmenting the customer base, understanding each segment, properly designing and bundling products or services for each profile, and above all, optimally pricing the offering, have nowadays become critical issues in the consumer-business world, especially for firms offering perishable goods or services. As many sectors have in recent years gone through important cost-cutting measures, there is often little space left on the operations side to increase profitability. New earnings will mostly come from increased revenue, which means that pricing is now one of the most important levers for profit growth.
ExPretio’s technology is used to address the following issues:
- Devising short, medium and long-term pricing strategies in a competitive and volatile environment.
- Segmenting the customer base, understanding the purchase behaviour of each segment and calculating their willingness to pay.
- Modeling the demand for each product type and estimating its characteristics.
- Making sense of gigabytes of competitive data gathered on the Web and historical sales records accumulated over the years.
- Schematizing the product/service offering and identifying the strengths and weaknesses of each product/service type in terms of pricing and marketing, with respects to competition and current market conditions.
- Optimally designing and pricing new product/service bundles and packages.
- Maximizing resource utilization by allocating limited resource units to the sale of product/service types that contribute the most to revenue and profit.
If any of these issues are of importance to your firm, consult with ExPretio in order to gain invaluable insight into your company’s pricing strategies, receive in-depth analysis backed by solid numerical results and scenario simulations, and to obtain guidance for increased profitability.