Pricing is hard Pricing home services is difficult. Whether you are looking how to price interior painting, a kitchen remodel, or house cleaning – all of which have varying levels of complexity and associated costs – it’s a challenge to know if your prices are right. Pricing is the single most important variable in your profitability.
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…
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,…
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…
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…
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…
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…