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Pricing Analysis

Client Leading technical software vendor
Challenge Optimize educational prices for technical software, where winning educational users as future commercial users is as important as the revenue from educational sales.
Solution Do controlled test on a few products in large product line. Analyze how price elasticities vary by type of product. Estimate revenue and unit sales impact of price changes for other products. Relate unit sales changes to future changes in commercial sales.
Client Impact Educational business unit has a firm basis for price decisions, and corporate management understands impact on future commercial sales.