Price Optimization Models
Price Optimization Models should factor in three critical pricing elements: pricing strategy, the value of the product to both buyer and seller, and tactics that manage all elements affecting profitability.
You, as a Practitioner, should:
- Select the preferred optimization model, and determine desired outputs and required inputs
- Collect historical data, including product volumes, the company’s prices and promotions, competitors’ prices, economic conditions, product availability, seasonal conditions, and fixed and variable cost details
- Clarify the business’s value proposition and set strategic rules to guide the modeling process
- Load, run and revise the model
- Establish decision-making processes that incorporate modeling results without alienating key decision makers
- Monitor results and upgrade data input to continuously improve modeling accuracy
Xanaxx Practitioners can offer both practical solutions and hands-on implementation plans to help put your organization on the path to success. Contact us today!