Pricing Analytics and Price Optimization
Veritec now offers Pricing Analytics and Price Optimization support to firms in many industries.
For many industries, one of the most significant challenges faced by Pricing Analysts is estimating how well prices have performed historically under comparable business conditions. Traditional approaches, such as those that depend on estimating price elasticity, frequently require aggregating data in ways that hide key relationships at the market segment level or specific competitive conditions – relationships that if understood would likely lead to adopting different pricing strategies and tactics and yield incremental profits.
After extensive research and development, Veritec has developed an approach to pricing analytics that addresses these challenges. Pricing Analysts can receive information in ways that are intuitive and specifically designed to answer the questions they ask. Questions such as:
- How does demand for my product change as my competitors vary their prices?
- What price(s) will maximize my profitability, when my three competitors set their prices at X, Y, and Z?
- If I raise/lower my price, how should I expect sales and profits to change under current business conditions?
- When I previously raised/lowered my price, how did my competitors react and how did this affect my sales and profits?
Veritec’s Customer Behavior (CuBe) Mapping technology enables analysts to identify the comparable business conditions that are most relevant when analyzing and optimizing their prices, as well as identify how different customer segments respond. Pricing strategies and tactics can be fine-tuned to achieve incremental revenue gains of several percentage points; the impacts on profits can be much larger.