Products
Pricing Solution for Retail and Consumer Products Companies
Why is pricing important to your company? Retail is a high intelligence function
with three critical variables: price, volume and cost, which determine the profitability
of the company. The relationship between these three variables is demonstrated by
the following simple equation:
Profit = (Price - Cost) X Volume
Profit is a result of how well the company has managed these three
variables: price, volume, and cost. Often cost is a fixed variable, so pricing is
a major strategy for growing the revenue. In every business, there are some key
questions, which will be asked every day:
• Can we increase the volume of sales?
• Will the market accept an increase in price?
• Which products should we target for price changes?
• Can we achieve improved gross profit with different geographies?
• Can we achieve improved gross profit from different customer groups?
These are not easy questions to answer if you do not have the expertise and tools
to assist in the analysis. Yet pricing is the most fundamental question for a growth
focussed business and can be a most effective profit enhancing strategy.
BiPredict has developed a suite of tools and techniques for profit enhancement through
improved pricing. For more information contact us
here and see how our price optimisation tool BIpro Addin for ProClarity
works for
one of our clients.
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