Maximizing profit needs a comprehensive review of pricing with a forecasting model.
The more the market is global, the more a global pricing approach is necessary. Moreover, pricing policy should be managed through a pricing decision process involving sales department, product lines, finance department...
What should be considered in a pricing model ? :
- value based customer market segmentation
- perceived value model by individual customers (conjoint analysis)
- marketing costs per sale and per customer
- production and purchase costs dynamics per unit
- long term revenue per customer
- competition positioning
- customer industry structure
What for ?
- Optimum pricing look-up.
- Pricing decision process support.
- Optimal capacity management.
- Yield management support.
- Business cases.
- Mark-up management.
- Global market positioning
- Implementation of pricing models such as conjoint analysis, Bertrand equilibrium, Cournot equilibrium, Cournot optimum.
How does Tétraèdre differentiates ?:
Corporate value creation:
- shorter decision cycle
- more effective decision
- effective implementation follow-up (rolling-forecast)
- easier consensus building
- lower long term owning cost
- easy read and design access to models
- shared management concepts
- access to intermediary calculation
Access management :
- validation circuit
- decision and change tracking
- decision process management by an administrator
- partial audit approach