Why was your airplane overbooked? How come the price for a hotel room changes from day to day and how do car-rental companies know how many cars to have at any given airport? These questions and more can be answered by looking at the management science tools used by some businesses to manage revenue, costs and capacity utilization.
When I started working as a pricing consultant more than 20 years ago, I became really excited about the development of “conjoint analysis”, which is a method of measuring price elasticity.
Our article was recently displayed on The Pricing Advisor, which is the Professional Pricing Society’s Newsletter. You can find out how to avoid a price war here.
Many input prices seem to be starting to inflate again. Allow yourself some options to adjust list prices if commodity costs continue to inflate.
A curious note about Ford Explorer's new pricing strategy on their 2011 model. They are offering a premium for an upgrade to a smaller motor with an EcoBoost engine.
A new pricing strategy that allows buyers to dictate prices can lead to higher profits; if some of the proceeds go to charity. The strategy is called “pay what you want,” and has gained a foothold in several markets in the last few years.
Why companies must more zealously execute their business strategies by focusing on turning their competitive advantage into clear decisive advantages.
Jim Saunders recently wrote an interesting article published in the 2010 Journal of Professional Pricing from the Professional Pricing Society. The introduction sums it best.
