/ Pricing /
The capability to rapidly determine appropriate prices for specific contracts, customers, or routes allows companies to increase market share, improve margins, and turn around or eliminate unprofitable customers. Analytics provides its clients with powerful, real-time pricing tools to achieve these goals.
Analytics’ approach to pricing is grounded in a detailed understanding of the cost to serve each customer and/or the current market demand. The ability to rapidly process extremely large transactional data sets, combined with our experience in modeling operations, allows us to price for individual customers, geographic sectors, and/or industries. With our tools, clients are able to adjust their pricing based on a variety of techniques, including:
- Real-time revenue management: Developing a process for companies faced with commodity pricing to segment their customers based on service requirements and flexibility. We create software for pricing which exploits this segmentation in real-time in both traditional purchasing and auction environments.
- Market based pricing: Working with companies to develop sophisticated models that simultaneously optimize pricing over a broad range of products in ways that capture substitution, segmentation, and price elasticity.
- Activity-based costing: Providing software tools and analysis that allow companies to sort through hundred of millions of operational transactions to determine their true costs.
Combining
network flow models with price elasticity models, Analytics was able
to
optimize freight pricing for a division of a major U.S. railway
to increase revenues
and decrease empty relocation of rail cars, with
a potential of 130% improvement
in profit margin. 