Smarter Pricing: How to capture more value in your market

Purchase-based data

Historical sales data

Internal records of sales are normally readily available. Many organizations have comprehensive records of purchases by individual customers from which responses to price increases or promotional discounts may be deduced. The costs of computer processing, data inference and modelling are falling, and software packages are available to help. Modelling buyer behaviour following price increases can lead to conclusions about the timing of price hikes. For example, where products or services are clearly seasonal, annual price increases can be moved to the start of the peak selling period in order to stimulate sales in the slack period and capture value as demand rises.

Care is needed in interpretation. For ...