https://www.pricingwiki.org/wiki/api.php?action=feedcontributions&user=Clement+Chatelet&feedformat=atomPricing Wiki - User contributions [en]2024-03-29T08:36:28ZUser contributionsMediaWiki 1.35.8https://www.pricingwiki.org/wiki/index.php?title=About_Pricing_Wiki&diff=557About Pricing Wiki2013-12-12T13:24:26Z<p>Clement Chatelet: Undo revision 556 by Clement Chatelet (talk)</p>
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==Creator and administrator==<br />
'''[http://www.openpricer.com/ Open Pricer]''' is a firm holding strong expertise in the field of pricing and revenue management.<br />
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'''[http://www.pricingsociety.com/ Professional Pricing Society]''' ('''PPS''') is the world's only professional society dedicated to pricing training and education.<br />
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http://www.pricingsociety.com/</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Pricing_Wiki&diff=555Pricing Wiki2013-02-20T09:48:31Z<p>Clement Chatelet: </p>
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<div>The Pricing Wiki aims at helping all pricing professionals, students and enthusiasts find the most comprehensive knowledge database.<br />
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<div style="float:left;margin:0.5em 0.9em 0.4em 0;">'''[[Price Indexes]]''' are useful to compare prices across products, customers and over time, to assess discount levels and to which degree discount policies are enforced.<br />
<br />
There are two important price indexes related to a sale transaction or a contract:<br />
*The '''list price index''': the ratio between the pocket revenue generated (after all discounts and rebates) and the “list revenue” that would have been generated if all products and services had been sold at their list price (undiscounted) as defined in the applicable price policy.<br />
*The '''target price index''': is the ratio between the pocket revenue generated (after all discounts and rebates) and the “target revenue” that would have been generated if all products and services had been sold at their target price as defined in the applicable discount policy. ([[Price Indexes | more...]])</div><br />
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<div style="float:left;margin:0.5em 0.9em 0.4em 0; text-align:center;">This index reflects that price is 10% below the discount policy:<br />
<br />
<br />
</div><br />
<div style="float:left;margin:0.5em 0.9em 0.4em 0; text-align:center;"><br />
<math><br />
\operatorname{Target Price Index (P1)} =<br />
\frac{Pocket Price (P1)}{Target Price (P1)} = <br />
\frac{9}{10} =<br />
{0.90}<br />
</math><br />
</div><br />
<div style="float:right;margin:0.5em 0.9em 0.4em 0; text-align:right;"><br />
<br />
<br />
<br />
<br />
<br />
[[Price Indexes | More about this formula...]]<br />
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</table></div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Value_map&diff=554Value map2013-01-18T14:47:13Z<p>Clement Chatelet: </p>
<hr />
<div>The '''value map''' is an analytical tool enabling managers to position their products based on their price and perceived benefits compared to competition.<br />
<br />
__FORCETOC__<br />
<br />
== Concept ==<br />
'''Value mapping''' is crucial when the economic value of a product (see Economic Value to the Customer or EVC) is impacted by non-economic factors.<br />
<br />
As a matter of fact, when selecting a product, rational buyers compare its benefits to associated costs, and buy the product that offer the most benefits at the lowest price.<br />
<br />
Nevertheless, buyers often have to make pricing decisions without having all the factors in hands to assess accurately the economic value. In addition, they make decisions by taking into account non-economic factors.<br />
<br />
The concept of '''value mapping''' is to relate the perceived benefits of competitors’ products against their prices as shown on the following example.<br />
<br />
[[File:value-map.png|500px|thumb|center|Value Map]]<br />
<br />
Basically, all products above the fair-value line are priced above what they deserve, and all products below the faire-value line offer a better value for the money spent.<br />
<br />
== Advantages ==<br />
*Understand how customers perceive products<br />
*Explain and predict market share evolution<br />
*Immediately view of your product competitiveveness<br />
<br />
== See also ==<br />
'''(en)''' [http://faculty.msb.edu/homak/homahelpsite/WebHelp/HomaHelp.htm#Value_Map_Overview.htm Professor Ken Homa (Georgetown University) - Value Map Overview]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=File:Value-map.png&diff=553File:Value-map.png2013-01-18T14:46:35Z<p>Clement Chatelet: </p>
<hr />
<div></div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Value_map&diff=552Value map2013-01-18T14:46:11Z<p>Clement Chatelet: Created page with "The '''value map''' is an analytical tool enabling managers to position their products based on their price and perceived benefits compared to competition. __FORCETOC__ == C..."</p>
<hr />
<div>The '''value map''' is an analytical tool enabling managers to position their products based on their price and perceived benefits compared to competition.<br />
<br />
__FORCETOC__<br />
<br />
== Concept ==<br />
'''Value mapping''' is crucial when the economic value of a product (see Economic Value to the Customer or EVC) is impacted by non-economic factors.<br />
<br />
As a matter of fact, when selecting a product, rational buyers compare its benefits to associated costs, and buy the product that offer the most benefits at the lowest price.<br />
<br />
Nevertheless, buyers often have to make pricing decisions without having all the factors in hands to assess accurately the economic value. In addition, they make decisions by taking into account non-economic factors.<br />
<br />
The concept of '''value mapping''' is to relate the perceived benefits of competitors’ products against their prices as shown on the following example.<br />
<br />
[[File:Value-map.png]]<br />
<br />
Basically, all products above the fair-value line are priced above what they deserve, and all products below the faire-value line offer a better value for the money spent.<br />
<br />
== Advantages ==<br />
*Understand how customers perceive products<br />
*Explain and predict market share evolution<br />
*Immediately view of your product competitiveveness<br />
<br />
== See also ==<br />
'''(en)''' [http://faculty.msb.edu/homak/homahelpsite/WebHelp/HomaHelp.htm#Value_Map_Overview.htm Professor Ken Homa (Georgetown University) - Value Map Overview]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Pricing_Wiki&diff=551Pricing Wiki2013-01-10T10:07:10Z<p>Clement Chatelet: Protected "Pricing Wiki" ([edit=sysop] (indefinite) [move=sysop] (indefinite))</p>
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<div>The Pricing Wiki aims at helping all pricing professionals, students and enthusiasts find the most comprehensive knowledge database.<br />
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<div id="mp-tfa" style="padding:2px 5px"><br />
<div style="float:left;margin:0.5em 0.9em 0.4em 0;">'''[[Price Indexes]]''' are useful to compare prices across products, customers and over time, to assess discount levels and to which degree discount policies are enforced.<br />
<br />
There are two important price indexes related to a sale transaction or a contract:<br />
*The '''list price index''': the ratio between the pocket revenue generated (after all discounts and rebates) and the “list revenue” that would have been generated if all products and services had been sold at their list price (undiscounted) as defined in the applicable price policy.<br />
*The '''target price index''': is the ratio between the pocket revenue generated (after all discounts and rebates) and the “target revenue” that would have been generated if all products and services had been sold at their target price as defined in the applicable discount policy. ([[Price Indexes | more...]])</div><br />
</div><br />
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<td style="width:1%; border:1px solid transparent;"></td><br />
<td class="MainPageBG" style="width:45%; border:1px solid #a3b0bf; background:#f5faff; vertical-align:top;"><br />
<table id="mp-left" style="vertical-align:top; background:#f5faff;"><br />
<tr><br />
<th style="padding:2px;"><br />
<h2 id="mp-tfa-h2" style="margin:3px; background:#cedff2; font-size:120%; font-weight:bold; border:1px solid #A3B0BF; text-align:left; color:#000; padding:0.2em 0.4em;">This week's featured formula</h2><br />
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<div id="mp-tfa" style="padding:2px 5px"><br />
<div style="float:left;margin:0.5em 0.9em 0.4em 0; text-align:center;">This index reflects that price is 10% below the discount policy:<br />
<br />
<br />
</div><br />
<div style="float:left;margin:0.5em 0.9em 0.4em 0; text-align:center;"><br />
<math><br />
\operatorname{Target Price Index (P1)} =<br />
\frac{Pocket Price (P1)}{Target Price (P1)} = <br />
\frac{9}{10} =<br />
{0.90}<br />
</math><br />
</div><br />
<div style="float:right;margin:0.5em 0.9em 0.4em 0; text-align:right;"><br />
<br />
<br />
<br />
<br />
<br />
[[Price Indexes | More about this formula...]]<br />
</div><br />
</div><br />
</td><br />
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</table><br />
== How to contribute ==<br />
Request your user account by sending an email to [[image:contact.png]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=WTP&diff=550WTP2013-01-10T10:03:14Z<p>Clement Chatelet: Removed protection from "WTP"</p>
<hr />
<div>'''WTP''' stands for [[Willingness to pay|Willingness To Pay]].<br />
<br />
[[Category:Acronym]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Willingness_to_pay&diff=549Willingness to pay2013-01-10T10:03:07Z<p>Clement Chatelet: Removed protection from "Willingness to pay"</p>
<hr />
<div>The '''willingness to pay''' (or '''WTP''') represents the price a customer is willing to pay for your product/service.<br />
<br />
It depends on competitors’ prices and customer perceived value versus competition (which can vary from customer to customer).<br />
<br />
<br />
[[Category:Concept]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Variable_cost&diff=548Variable cost2013-01-10T10:02:28Z<p>Clement Chatelet: Removed protection from "Variable cost"</p>
<hr />
<div>A '''variable cost''' relates to a cost that is volume dependent.<br />
<br />
<br />
<br />
[[Category:Costing]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Value_proposition&diff=547Value proposition2013-01-10T10:02:21Z<p>Clement Chatelet: Removed protection from "Value proposition"</p>
<hr />
<div>A '''value proposition''' is a single or set of value a company promise to deliver to its customers for specific products/services.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Sale_probability&diff=546Sale probability2013-01-10T10:02:15Z<p>Clement Chatelet: Removed protection from "Sale probability"</p>
<hr />
<div>A '''sales probability''' is the probability that an offer is chosen and not cancelled or modified later-on. It equals the [[Choice probability|choice probability]] multiplied by the [[Realization rate|realization rate]].<br />
<br />
<br />
<br />
[[Category:Indicator]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Sale&diff=545Sale2013-01-10T10:02:09Z<p>Clement Chatelet: Removed protection from "Sale"</p>
<hr />
<div>A '''sale''' is the exchange of a product/service for money.<br />
<br />
<br />
<br />
[[Category:Sales]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=RM&diff=544RM2013-01-10T10:02:03Z<p>Clement Chatelet: Removed protection from "RM"</p>
<hr />
<div>'''RM''' stands for [[Revenue management|Revenue management]].<br />
<br />
[[Category:Acronym]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Revenue_management&diff=543Revenue management2013-01-10T10:01:56Z<p>Clement Chatelet: Removed protection from "Revenue management"</p>
<hr />
<div>'''Revenue management''' (aka. '''RM''') is the process of periodically reviewing transactions for goods or services already supplied and to forecast future demand behavior in order to adjust prices and products/services availability by market micro segment.<br />
<br />
It is also known as [[Yield management]].<br />
<br />
<br />
[[Category:Method]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Realization_rate&diff=542Realization rate2013-01-10T10:01:49Z<p>Clement Chatelet: Removed protection from "Realization rate"</p>
<hr />
<div>A '''realization rate''' is the number of final invoiced sales recorded for a given offer divided by the number of orders recorded for that given offer. The '''realization rate''' may be inferior to 100% due to cancellations and modifications of orders. In the case of contract agreements it may also be superior to 100%, when actual sales/orders exceed initial expectations.<br />
<br />
<br />
[[Category:Indicator]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Price_configuration&diff=541Price configuration2013-01-10T10:01:39Z<p>Clement Chatelet: Removed protection from "Price configuration"</p>
<hr />
<div>A '''price configuration''' refers to a specific price offered to a customer along with a specific set of products/services.<br />
<br />
<br />
<br />
[[Category:Tariff]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Price&diff=540Price2013-01-10T10:01:29Z<p>Clement Chatelet: Removed protection from "Price"</p>
<hr />
<div>'''Price''' is the amount of money given in payment for a product or service.<br />
<br />
<br />
<br />
<br />
[[Category:Indicator]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Payment&diff=539Payment2013-01-10T10:01:22Z<p>Clement Chatelet: Removed protection from "Payment"</p>
<hr />
<div>A '''payment''' refers to the exchange of money in exchange of a product/services.<br />
<br />
[[Category:Concept]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Opportunity_cost&diff=538Opportunity cost2013-01-10T10:01:15Z<p>Clement Chatelet: Removed protection from "Opportunity cost"</p>
<hr />
<div>An '''opportunity cost''' is the expected loss in future revenue from selling a unit of product now rather than reserving it for a future sale.<br />
<br />
It applies only to products/services with limited inventory or replenishment constraints.<br />
<br />
[[Category:Concept]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Margin&diff=537Margin2013-01-10T10:01:08Z<p>Clement Chatelet: Removed protection from "Margin"</p>
<hr />
<div>The '''margin''' represents the sums of money left after subtracting [[cost|costs]].<br />
<br />
There are different types of margin but you could divide them into 2 main types:<br />
<br />
#Gross margin<br />
#Net margin<br />
<br />
== Gross margin ==<br />
<br />
Gross margin = Revenue - Direct costs<br />
<br />
== Net margin ==<br />
<br />
Net margin = Revenue - (Direct costs + Indirect costs)<br />
<br />
[[Category:Indicator]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Income&diff=536Income2013-01-10T10:01:01Z<p>Clement Chatelet: Removed protection from "Income"</p>
<hr />
<div>The '''income''' generally refers to [[Net income|net income]].<br />
<br />
<br />
[[Category:Indicator]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Fixed_cost&diff=535Fixed cost2013-01-10T10:00:55Z<p>Clement Chatelet: Removed protection from "Fixed cost"</p>
<hr />
<div>A '''fixed cost''' relates to a [[cost]] that is not volume dependent.<br />
<br />
[[Category:Costing]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Dynamic_pricing&diff=534Dynamic pricing2013-01-10T10:00:46Z<p>Clement Chatelet: Removed protection from "Dynamic pricing"</p>
<hr />
<div>'''Dynamic pricing''' refers to a method in which the prices of the different offers are adapted over time to reflect the level of demand versus capacity. This type of environment is typical of low cost airlines that increase the fare on flights until time of departure depending on load factor and lead-time.<br />
<br />
[[Category:Method]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Cost&diff=533Cost2013-01-10T10:00:36Z<p>Clement Chatelet: Removed protection from "Cost"</p>
<hr />
<div>A '''cost''' is the value of money spent to serve a customers. The more costs you have for serving a customer, the less profit you will draw from selling your products/services to this particular customers.<br />
<br />
Costs may be direct/indirect and fixed/variable.<br />
<br />
[[Category:Costing]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Choice_probability&diff=532Choice probability2013-01-10T10:00:28Z<p>Clement Chatelet: Removed protection from "Choice probability"</p>
<hr />
<div>The '''choice probability''' is the probability of choice of a given offer by a given customer (when this offer is proposed to the customer alone or within an offer set/sequence).<br />
<br />
[[Category:Indicator]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Bid_price&diff=531Bid price2013-01-10T10:00:17Z<p>Clement Chatelet: Removed protection from "Bid price"</p>
<hr />
<div>The '''bid price''' indicates the minimum price at which the resource may be sold at a given point in time.<br />
<br />
__TOC__<br />
<br />
<br />
== Single product ==<br />
It represents the expected marginal revenue generated by the last unit (resource/product) of a constrained and perishable inventory.<br />
<br />
The '''bid price''' equals the price at which the unit could be sold in the future multiplied by the probability to sell this unit.<br />
<br />
=== Example ===<br />
In the case of a room inventory (hotel):<br />
<br />
At a given point in time, there is a probability of 60% to sell the last room at $100 in the future and a probability of 80% to sell this last room at $80. The bid price is then $64 which is the greatest of ($100 * 60% and $80 * 80%). If a customer requests the room at that time, the minimum price to quote is $64.<br />
<br />
== Packaged offer: Elementary components ==<br />
The '''bid price''' of an offer composed of elementary components (resources) equals the sum of the bid prices of the different components.<br />
<br />
=== Example ===<br />
In the case of a tour operator who sells packaged offers that comprise three types of components:<br />
<br />
*travel (airline or train)<br />
*hotel/resort accommodation<br />
*excursion/entertainment/events<br />
<br />
BP(package) = BP(airline) + BP(hotel) + BP(excursion)<br />
<br />
== Packaged offer: Constrained components ==<br />
A bid price may be defined for each offer as the sum of bid prices of constrained components (flight seats and hotel rooms).<br />
<br />
=== Example ===<br />
If a given offer involves<br />
*2 flights segments<br />
**outbound flight Fo<br />
**return flight Fr<br />
*7 days accommodation in a given room type R1 to R7<br />
<br />
The '''bid price''' of the offer equals the sum of components bid prices :<br />
<br />
BP(Offer) = BP(Fo) + BP(Fr)+BP(R1) +BP(R2) +....+BP(R7)<br />
<br />
[[Category:Tariff]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Anchor&diff=530Anchor2013-01-10T09:59:52Z<p>Clement Chatelet: Removed protection from "Anchor"</p>
<hr />
<div>An '''anchor''' is the first offer made by each side during a negotiation, wether it is a specific price, payment terms or a bundle of equipment or services.<br />
Basically, it anchors the negotiation around a specific point.<br />
<br />
== Effect of anchors ==<br />
<br />
The anchors are numerical values which tends to pull judgments toward themselves. We call this the [[Anchoring|anchoring]] effect. The effect is particularly strong when occurring in a situation of great ambiguity and uncertainty.<br />
<br />
There are three studies that demonstrate the influence anchors on human judgment, whether it was exercised on experts or regular individuals:<br />
# Researchers Greg Northcraft and Margaret Neale had two groups of real estate agents estimate a property value. They provided the agents with a high [[List price|list price]] in one case and in the other case a low [[List price|list price]]. It turns out these experts were influenced by this data.<br />
# Thomas Mussweiler, professor of social psychology at the university of Cologne, had customers approach German mechanics and ask them for an estimate of their car’s value. Half the mechanics were given a low anchor and the other half a high anchor. Again, these experts estimated the car to be worth substantially more when they were given the high-anchor value.<br />
# In 1974, psychologists Amos Tversky and Daniel Kahneman span a roulette wheel, landing randomly on a number. Then, they asked participants to estimate the percentage of African countries belonging to the United Nations. When a 10 appeared on the roulette wheel, participants gave a median answer of 25 countries. When a 65 appeared, participants gave a median answer of 45 countries.<br />
<br />
These studies emphasize the effect anchors have on us, however irrelevant the data might be.<br />
<br />
== How to use anchors ==<br />
=== Should you make the first offer ===<br />
Common wisdom for negotiations often advises to wait for the other side to make the first move, the first offer. Nevertheless, as the studies seen above prove it, making the first offer will anchor the negotiation in your favor. There is one major exception to that rule: when your opponent have much more information than you do.<br />
<br />
Negotiators shouldn’t be afraid to be aggressive on their first offer and should place anchor relatively high. In the perspective of a seller, the more extreme the first offer is, the higher the final settlements are, even when making concessions. Moreover, by making an aggressive first offer you give your opponent the opportunity to extract concessions from your, providing him with great satisfaction.<br />
On the opposite, a nonaggressive first offer will leave you two choice, make small concessions or stand by your demands.<br />
=== How to construct your first offer ===<br />
First of all, when offering a price, it is important to keep in mind your [[Target price|target price]] and [[Floor price|floor price]] (or reservation price). It will enable you to walk away of any deal below your [[Floor price|floor price]] and lead your negotiation toward your [[Target price|target price]] (or above).<br />
Then, try to identify the reservation price of your opponent and his alternatives to your offer. This way, you will be able to offer a price beyond but also to assess boundaries you should not cross to avoid driving your opponent away.<br />
=== How to protect your offer ===<br />
Sometimes, your opponent strikes back with a counter offer and propose splitting the difference between your market-based price and his emotion-based price.<br />
This is why you should always base your offer on tangible data and information so that your can argue and stand by your demand. Then, ask your opponent to justify his offer and explain why his price is correct. Chances are he won’t be ably to justify his counter offer.<br />
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== See also ==<br />
'''(en)''' [http://hbswk.hbs.edu/archive/4302.html Harvard Business School Working Knowledge - When to Make the First Offer in Negotiations]<br />
[[Category:Sales]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Revenue_management&diff=529Revenue management2013-01-10T09:30:03Z<p>Clement Chatelet: </p>
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<div>'''Revenue management''' (aka. '''RM''') is the process of periodically reviewing transactions for goods or services already supplied and to forecast future demand behavior in order to adjust prices and products/services availability by market micro segment.<br />
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It is also known as [[Yield management]].<br />
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[[Category:Method]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Zone_of_indifference&diff=510Zone of indifference2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>The '''zone of indifference''' is the area around the [[Value equivalence line|value equivalence line]] at which small changes in price or benefits are associated with no substantial change in quantity sold or have inconsequential impact on the perceived relative value of the offerings.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Yield_management&diff=508Yield management2013-01-09T18:15:05Z<p>Clement Chatelet: 2 revisions: Import Pages Professional Pricing Society</p>
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<div>'''Yield management''' (or [[Revenue management]]) is a [[Price structure|price structure]] in which the price of the good increases as the time to purchase approaches the time of use. '''Yield management''' has been recommended for goods in which capacity is limited and perishable, customers can reserve units of capacity in advance, and the firm is able to sell the same capacity at different prices.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Volume_hurdle&diff=505Volume hurdle2013-01-09T18:15:05Z<p>Clement Chatelet: 2 revisions: Import Pages Professional Pricing Society</p>
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<div>In conducting a [[Profit sensitivity analysis|profit sensitivity analysis]] of a price decrease, the '''volume hurdle''' defines the minimum required volume increase for a price decrease to improve the [[Profit equation of the firm|firm’s profits]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Vertical_price_fixing&diff=502Vertical price fixing2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Vertical price fixing''' refers to price agreements between firms at different points in the [[Value chain|value chain]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Versioning&diff=500Versioning2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>See [[Tiered price structure]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Value-disadvantaged&diff=498Value-disadvantaged2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>We talk about '''value-disadvantaged''' product or service when it offers fewer benefits than the price extracted relative to its competitive alternatives. In a [[Price-to-benefits map|price-to-benefits map]] (or [[Value map]]), '''value-disadvantaged''' products would be positioned above the zone of indifference.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Value-advantaged&diff=496Value-advantaged2013-01-09T18:15:05Z<p>Clement Chatelet: 3 revisions: Import Pages Professional Pricing Society</p>
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<div>We talk about '''value-advantaged''' product or service when it offers more benefits than the price extracted, relative to its competitive alternatives. In a [[Price-to-benefits map|price-to-benefits map]] (or [[Value map]], '''value-advantaged''' products would be positioned below the zone of indifference.<br />
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== See also ==<br />
[[Value-disadvantaged]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Value_equivalence_line&diff=492Value equivalence line2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>On a [[Price-to-benefits map|price-to-benefits map]] (or [[Value map]]), the '''value equivalence line''' is defined by products which offer improvements in benefits commensurate with an increase in price.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Unharvested_value&diff=490Unharvested value2013-01-09T18:15:05Z<p>Clement Chatelet: 2 revisions: Import Pages Professional Pricing Society</p>
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<div>We talk about '''unharvested value''' when positioning an offering [[Value-advantaged|value-advantaged]] when evidence demonstrates that the firm could raise its price without effect on the sales quantity demanded.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Tying_arrangement&diff=487Tying arrangement2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>A '''tying arrangement''' is a [[Price structure|price structure]] in which a customer must buy both the durable and the consumable parts of the offer in order to derive value. The durable part of the offer will be priced relatively low to encourage purchase while the consumable part will be priced relatively high to extract value from customers. Under certain circumstances, '''tying arrangements''' are illegal. Contrast with [[Two-part tariff|Two-part tariff]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Two-part_tariff&diff=485Two-part tariff2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>A '''two-part tariff''' is a [[Price structure|price structure]] in which a customer must buy both the durable and the consumable parts of the offer in order to derive value. The durable part of the offer will be priced relatively high to extract value from customers, while the consumable part will be priced relatively low but above the [[Marginal cost|marginal costs]] per unit. At times, the price of the durable good is known as the [[Entry fee|entry fee]] and the price of the consumable good is known as the [[Metered fee|metered fee]]. Contrast with [[Tying arrangement]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Total_period_price&diff=483Total period price2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>The '''total period price''' is the total price a customer would for a collection of goods over the same period as that of a comparable subscription if the items were purchased independently.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Tit-for-tat_pricing&diff=481Tit-for-tat pricing2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Tit-for-tat pricing''' means sequentially mirroring the price moves of a competitor.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Tiered_price_structure&diff=479Tiered price structure2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>A '''tiered price structure''' is a [[Price structure|price structure]] which attempts to price segment customers according to their [[Willingness to pay|willingness to pay]] for marginal improvements in attributes, features, and benefits. Tiered pricing is suggested when there is sufficient demand heterogeneity along a single dominant dimension.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Tied_complements&diff=477Tied complements2013-01-09T18:15:05Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Tied complements''' refer to complementary products for which one of the complementary goods is intended only to be used in conjunction with the other. Contrast with [[Independent complements|independent complements]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Third-degree_price_discrimination&diff=475Third-degree price discrimination2013-01-09T18:15:04Z<p>Clement Chatelet: 2 revisions: Import Pages Professional Pricing Society</p>
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<div>A '''third-degree price discrimination''' is the action of charging separate [[Customer segment|customer segments]] different prices where the [[Segmentation hedge|segmentation hedges]] can be derived from different attributes, features, or benefits associated with the offer, or from attributes of the customer themselves.<br />
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== See also ==<br />
*[[First-degree price discrimination]]<br />
*[[Second-degree price discrimination]]</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Tactical_price_segmentation&diff=472Tactical price segmentation2013-01-09T18:15:04Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Tactical price segmentation''' is a [[Price segmentation|price segmentation]] that is situationally dependent. E.g. promotional discounts or customer-specific discounting.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Tacit_knowledge&diff=470Tacit knowledge2013-01-09T18:15:04Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Tacit knowledge''' refers to knowledge held that cannot be easily codified or exchanged with others outside of experience or direct interaction with the knower.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Superior_alternative&diff=468Superior alternative2013-01-09T18:15:04Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>An offering is identified as being a '''superior alternative''' to its comparable alternative if the [[Differential value|differential value]] is positive.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Substitutes&diff=466Substitutes2013-01-09T18:15:04Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Substitutes''' refers to two goods (or more) for which the purchase of one good decreases the likelihood of the purchase of the second good. The goods can be products or services.</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Subscription&diff=464Subscription2013-01-09T18:15:04Z<p>Clement Chatelet: 2 revisions: Import Pages Professional Pricing Society</p>
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<div>A '''subscription''' is a [[Price structure|price structure]] in which a series of goods to be delivered over time are sold as a single item. Some authors have analyzed subscriptions as a form of [[Price bundle|price bundling]].</div>Clement Chatelethttps://www.pricingwiki.org/wiki/index.php?title=Strategic_price_segmentation&diff=461Strategic price segmentation2013-01-09T18:15:04Z<p>Clement Chatelet: 1 revision: Import Pages Professional Pricing Society</p>
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<div>'''Strategic price segmentation''' is a [[Price segmentation|price segmentation]] defined through the prices of offers or the [[Price structure|price structure]] of the offering.</div>Clement Chatelet