Client
A leading technical software vendor.
Challenge
Optimize educational prices for technical software.
Background
Winning educational users as future commercial users is as important as the revenue from educational sales. Therefore the
company must trade off revenue against number of student users, and not set prices the optimize revenue or profit. An
aggressive large company had recently stepped up its educational marketing and offered less sophisticated products to students
at no charge.
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.
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