Abstract
Most industries are not as advanced in pricing as the travel and transportation industries. In fact, many companies price their products or services using some form of cost-plus pricing. In this article, we discuss how we think that the champions of tomorrow will move from inside-out (cost-plus) pricing to outside-in (value-based) pricing. The challenge with this transition is that you need to understand your customers’ preferences and willingness to pay and represent these in a demand function that can be used to optimize the prices. This article lays out a framework for how this can be accomplished.
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bhas close to 20 years of consulting experience in Pricing and Revenue Management. He has worked in senior-level positions at Decision Focus Inc, Talus Solutions and Veritec Solutions before joining PriceGain as a Senior Partner in 2004. In his consulting role, He has worked with organizations in a variety of industries including passenger airlines, utilities, manufacturing, tour operators, media, groceries and retailers. PriceGain helps companies improve profits through the development and implementation of strategies, processes and tools for successful Pricing and Revenue Management.
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Skugge, G. The future of pricing: Outside-in. J Revenue Pricing Manag 10, 392–395 (2011). https://doi.org/10.1057/rpm.2011.13
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DOI: https://doi.org/10.1057/rpm.2011.13