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Pricing Data

Pricing of many products is no longer static because products are no longer just physical items delivered through slow moving channels. Online sales of media deliver ‘product’ immediately to the purchaser, and outside influencers can shift and change demand quickly. A music track from a back catalogue used in a new online game can spark a revival of sales very quickly, whilst the mention of a little known book during a news story can cause unexpected demand that surges and then dies away.

Intangible products can spawn many more variants so that more niches are served and so that the lifecycle of the product can be extended. Products are also becoming blends of other products often sourced from outside partners and with differing intellectual property rights and licensing structures that need agreement, which can make market responsiveness slow.

Pricing can be a tough challenge. Sales data can be flowing in from sellers almost instantly when effective IT integrations are made and your performance can often be compared against rival suppliers, but knowing when to change price to prolong the lifecycle remains sluggish because of the effort of crunching the data and because of the lag in management processes. Changing a price downwards too soon causes a loss in revenue, whilst waiting too long means that a lifecycle cannot be extended so effectively.

Predictive reporting can warn businesses in advance about changing demand, and a cogent data structure designed by experts enables pricing to become dynamic. Launching new variants of a product and moving them through the management approval processes to take advantage of the market becomes highly streamlined when the organisation’s data is structured correctly.

Find out how you can deploy dynamic pricing...

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