Effective Price Optimization Techniques

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Re: Effective Price Optimization Techniques

#1 Postby Sourav1990 » Fri May 13, 2016 9:58 am

Price optimization is an effective tool being used now a days by companies in order to have an upper hand over its competitors. In India customers are very much value sensitive, always judging how much value they are getting at a given price. It is at this point the companies are targeting. They are trying to add more values to their products at minimum price in order to gain loyal customers. Target pricing and value based pricing are gaining importance in today's world.
Be it mobile industry, automobile industry etc. these two methods of pricing are gradually taking the front seat.

Posts: 15
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Location: Indore, MP

Effective Price Optimization Techniques

#2 Postby myleastprice » Tue Mar 01, 2016 5:31 pm

Since companies evaluate how to retain their best consumers, many consider implementing selling Price Optimization. For the majority of customers, selling price connotes real value. Becoming familiar with price and what that means to a consumer is a crucial aspect of understanding the person's life span value of a business. In fact, according to one estimate, 30 percent of insurance buyers happen to be price-motivated or ‘serial shoppers’, without brand loyalty.

Value optimization is an approach with which a business, after understanding how very sensitive its existing clients happen to be to changes in merchandise prices, will arrive for how much business that can obtain within described profitability levels. Optimal prices are necessary if a company wants to web page link its business volume with profits and even more importantly, in the event it wants to enhance profits by keeping the same amounts of customer preservation.

Price optimization has turned into increasingly important because product sales of personal lines of business have become extremely competitive. Many insurers will be also taking an appearance at launching new items, some of which will be in niche customer portions. In this context, obtaining the price right is usually all the more essential or a company might lose valuable clientele to its competitors.

Price optimization is a significant component of overall price management, which usually is crucial to productivity. In fact, it is usually the next frontier of insurance policy management. Understanding pricing at a limited level is a must to understand the level of sensitivity of price changes.

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