Yieldigo’s Post

Implementing a Digital Pricing Solution I’ve had a few conversations about the challenges of implementing digital pricing solutions recently. One of the most common themes has been the challenge of managing the planning, preparation and leadership of such a major project. This very often leads to a ‘No Decision’ decision (they decide not to decide) on the digital solution. “The best thing you can do is the right thing; the next best thing you can do is the wrong thing; the worst thing you can do is nothing.” – Theodore Roosevelt If you are considering a digital solution for pricing and need support to finalise the goals, define the scope and plan the project phases, do get in touch in the usual ways. #commercialexcellence #pricing #digitalpricing https://lnkd.in/e2AHZ3Gu 

𝗜𝘀 𝘆𝗼𝘂𝗿 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘂𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗳𝘂𝗹𝗹 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹? In today's dynamic market, pricing isn't merely a number—it's a strategic instrument that can drive significant business growth. Our latest blog post explores how mathematical optimization and machine learning are revolutionizing pricing strategies across various sectors—from retail and e-commerce to fast-food chains and airlines. For decision-makers looking to enhance revenue through data-driven pricing strategies, this is an essential read. Link to the Blog - https://lnkd.in/d8Snu25f #PricingStrategy #RevenueOptimization #MachineLearning #DynamicPricing #BusinessGrowth #DataDrivenInsights

Here are some pricing options for IT products and services ¹: - *Competition-Based Pricing*: This pricing strategy involves setting prices based on competitors' prices. This is often used in markets where competitors offer similar products or services and where price is a major consideration for customers. - *Cost-Plus Pricing*: This pricing strategy involves adding a markup to the cost of providing a good or service to determine final pricing. The markup can be a percentage, a fixed amount or both. - *Dynamic Pricing*: This pricing strategy involves setting prices based on real-time market conditions. Dynamic pricing means that the price of a product or service can change frequently, depending on such factors as current inventory levels, how quickly inventory is selling, competitors' prices, customer behavior and even current events. - *Freemium Pricing*: This pricing strategy involves offering a free version plus a premium version presented to the customer at the same time. The idea is that a percentage of customers will love or have high enough needs for the product or service that they'll upgrade to the paid premium version. - *High-Low Pricing*: This pricing strategy involves setting a high price for a product or service and then offers fairly frequent discounts, sales or other promotions. - *Hourly Pricing*: This pricing strategy involves charging customers based on the number of hours that employees and subcontractors work for that customer. - *Skimming Pricing*: This pricing strategy involves charging a high price for a new product or service, then lowering the price over time as more competitors enter the market and/or as demand for the product or service decreases. - *Penetration Pricing*: This pricing strategy involves setting the initial price very low for a new product and service, then raises it over time. - *Premium Pricing*: This pricing strategy involves setting prices higher than a business otherwise would or, more commonly, higher than the competition's prices. Would you like more information on any of these?

How do you price that product? Communicate VALUE because that is what customers pay for; few care how much you have spent to create the product. Yes, do not use a cost-plus pricing (cost plus markup) model in your company. It is a very non-optimized pricing playbook. Customers do not buy your products because of how much it costs you to produce them. What they want is VALUE! So, when you price, focus on value, and that means, use a value-based pricing model (cost plus markup plus perceived value). Of course, as you do that, you need to understand your cost, including the fixed and variable costs. In elementary physics, friction is a force. To overcome friction, you need another force. In the market, customers' problems are market frictions. To overcome them, you need to create products, the powerful forces in market systems. Products deliver value! Communicate VALUE, forget cost! Have you tried this culinary tool, Hotplet? Hotplet Delivers! Check it out here [https://lnkd.in/dEbGj3UP]

PriceBeam.com solves - Challenges in consumer goods pricing can be a daunting task for companies. Did you know that only 12% of consumer brands have a winning pricing strategy? That's where PriceBeam comes in. We work with FMCG/CPG firms to optimize their pricing by applying the best practices from various industries. Our pricing solution uses data and statistics to find a price that simultaneously boosts top-line growth, aligns with brand positioning, and increases penetration and growth. With PriceBeam, you can rest assured that our pricing method stays ahead of the game and is adjusted to prevailing industry trends. Consumer goods companies benefit from price optimization more than any other industry, and we're here to help. Learn more about how PriceBeam.com brings value to your pricing strategy today.

Dynamic Pricing: Definition, Types and How to Implement it in 2024

A data-driven pricing strategy is key to long-term profitability. Value-based pricing, which sets prices based on perceived customer value rather than production costs, offers flexibility and market responsiveness. 💰 Advanced machine learning solutions enhance this approach by analyzing diverse datasets—such as sales history and customer behavior—to reveal deeper insights and trends. Learn how we help businesses optimize their pricing with data-driven decisions: https://sie.ag/FVMvB #ValueBasedPricing #MachineLearning

Imagine this: Your inventory self-manages, auto-alerts for refills, and tracks every item. I embarked on a journey to understand how I would build a personalized mini-inventory system. The mission? To never run out of stock or face overstocking. Step 1: I chose a digital ledger. Notion, Airtable, holding product IDs, characteristics, and reorder limits. Step 2: A diary of moves - entries, exits, bookings. This wouldn't just be a list; it would be the core of my inventory, showing me the life cycle of every product. Step 3: The QR code magic. Each new arrival would get a unique QR code, turning physical items into digital data points easily traced. Step 4: The automation. Stock dips? An automatic email to my supplier drafts itself, needing just my approval to send. 15-20 hours later, this vision could be turned reality. Notion and Make would be my go-to tools; simplicity and efficiency. Your turn now. What internal processes are you dreaming of automating? Let's turn those dreams into plans.

Methods used in pricing are: 1- Market-based pricing (also called Competitive-based pricing): This method is used when selling inferior products, and we use it when prices in the market are competitive. The producer, using this method, cannot control the profit margin, which makes it constantly rely on the market price and cannot deviate from it. Here we calculate the target cost not the market price, because it will be given as an information we know, because it is a competitive price that is known in the market. The formula will be: Market Price (known) - Target profit (set) = Target cost. 2- Cost-plus based pricing: The second approach is used when pricing products that are considered differentiated, the differentiation is based on the customer's preferences. The product here is distinctive, which allow the producer to set a reasonable and appropriate profit margin for the product. The calculation under cost-based pricing is by using this formula: Cost (known) + Markup % (calculated) = Price. Three methods are used in calculating the markup% under the cost-based pricing method: a- Full cost method: MARKUP % = PROFIT / FULL COSTS PER UNIT * VOLUME. b- Variable cost method: MARKUP % = PROFIT + F.C / V.C PER UNIT * VOLUME. c- Absorption (production) cost method: MARKUP % = PROFIT + S&A EXP. / PRODUCTION COSTS PER UNIT * VOLUME.

Navigating the World of Drop shipping: Pros, Cons, and Best Practices:  Drop shipping is a way to sell products online without having to keep them in stock yourself. When someone buys a product from your online store, the order is sent to a third party who then ships the product directly to the customer. Drop shipping has some benefits (pros) like You don't need to buy and keep inventory, so it's a low-cost way to start an online store. You can also offer a wide range of products without having to invest in inventory. Plus, it's easy to set up and manage. But there are also some downsides (cons) to drop shipping. The first downside is that The profit margins can be low because there is a lot of competition. second one is that You also have little control over the supply chain, which can lead to issues with product quality and shipping times. Providing good customer service can also be a challenge. To be successful in drop shipping, it's important to find a reliable supplier, focus on a specific niche, provide excellent customer service, optimize your website, and analyze your data. In simple way, drop shipping is a way to sell products online without having to keep them in stock yourself. It has some benefits, like low start-up costs and a wide range of products, but there are also some downsides, like low profit margins and little control over the supply chain. To be successful it's important to find a reliable supplier, focus on a specific niche, provide excellent customer service, optimize your website, and analyze your data. Do you have experience with drop shipping? Share your thoughts and insights in the comments below!