Customer Profitability Analysis Example that Increases Profits

Visual analytics is a great way to uncover insights in complex financial data while highlighting opportunities for improvements. Today, we will share how to perform a customer profitability analysis to help your business increase profit. Customer Profitability Analysis Example Charts There are several ways to help you perform your customer profitability analysis. You can use a Client Profitability Chart or a Profitability Pareto. Client Profitability Chart A quick way to

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How to Maximize Profit By Finding Profit Levers and Using It Properly

Your CEO asks you on how to maximize profit. What do you do? Our first tip, find your profit levers. How to Find Profit Levers If you are a program manager, a client manager, or a department manager, your profit levers may be fairly apparent. Start by obtaining financials for your responsibility. At minimum, you should have revenue, variable costs, and fixed costs. Additionally, you can get costs such as

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Google’s Pricing Strategy: The Automated Auction

Let’s take a moment and consider one of the more interesting of the pricing models – the auction.  And to see this model at its full potential, we’ll want to analyze the real world example of the company that got auctioning right, and is currently leveraging it to pull in billions of dollars every quarter: Google. Yes, everyone’s favorite search engine is a giant auctioning machine.  You sign up for

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How to Price Your Product in 1 Minute

Let’s say I have an idea for a new product I want to take to market, and I want to understand (naturally) what the price points for this particular product might be.  Let’s pretend further, for the sake of having an example, that my new product is a fiction book.   I may say to myself, “Now days, fiction books may not be very profitable, because with the advent of

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A Complex Pricing Model Made Easy by Excel (part 2)

We are now ready, having performed a historical analysis in part 1 of this post, to create a useful system for pricing. Depending on how comfortable you are with statistics and mathematical operations with standard deviations, you may or may not understand why the excel formulas are set up the way that they are. A full explanation of the mathematics is not our purpose here, however; we just want to

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A Complex Pricing Model Made Easy by Excel (part 1)

Pricing is perhaps one of the hardest aspects of marketing to get right. And even though it’s impossible to keep control over and measure all of the variables involved, using analytics can help you track and predict enough of those variables so you can set the price where it needs to be. Here, we will outline an example of how to set up a pricing model for a service –

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