What are Pricing Models?
Increasingly, companies are using data to ensure prices are up to date and competitive. Pricing models allow you to adapt to customer behaviour and changing market conditions to maximise revenue.
We work with organisations to build and rollout a bespoke pricing model that can encompass a range of variables:
- Competitor’s Pricing
- Customer’s Behaviour
- Customer’s Location
- Time-based demand (Peak Pricing)
However, a pricing model alone may not suffice. The key to truly taking control of your pricing strategies is through change management and a rigorous test and learn framework. We work side-by-side with organisations to support rolling out a pricing model that is fit for purpose alongside internal business models.
Why use Pricing Models?
Our clients typically adopt our pricing model services for one of the following reasons:
Keep up with market trends
Understanding competitor pricing is essential in driving revenue. Our model can help you understand the market and adapt quickly.
Boost stagnant sales & improve inventory management
Pricing models are particularly important when dealing with perishable items or time sensitive products. By understanding the demand and marginal revenue, pricing models can ensure no opportunity of sale is missed.
Maximise return on investment
Through understanding more about the customer and competitors, transparent pricing models allow you to increase your efficiencies and respond to your customer’s needs.
How does Lynchpin do it?
Integrated and Scalable
We work closely with our clients to understand the pre-existing architecture, optimising and improving data capture to maximise the pricing model’s efficacy. Our approach allows us to deliver a solution that can be seamlessly integrated with pre-existing technology. The models are built with scalability at the forefront, ensuring the solution is effective long-term.
Strategy and Consulting
There are many statistical techniques available for building pricing models, however to develop a pricing strategy you need to go a step further. With expertise in the fields of strategy and change management we can focus the outputs of these models to achieve your over-arching business objectives while ensuring organisation buy-in and consistent execution of strategies.
Bespoke Pricing Models
With pricing, there is no one size fits all. We work with organisations to build a truly bespoke model. From concept to production, we help provide a pricing model that is fully tailored to your needs.
Machine Learning expertise
Using the foremost machine learning techniques, leveraging data from external and internal sources, we create a comprehensive personalised model. Through providing a comprehensive testing plan and long-term support, we establish a refined and well-integrated pricing model.