How to increase the revenue in your business
15 ways to price your product: demand factors, price discrimination, overbooking
Lesson 1. Revenue Management. Basic terms. What should you know about pricing to maximize profits?
Introduction to the term ‘revenue management’. We will discuss the approach to managing profitability. As an example, we will introduce a case study from an airline that increased their revenue. Using a step-by-step analysis, we will determine how pricing works and discuss the importance of setting the right price for your service.
Lesson 2. Which factors affect the pricing process?
We will conduct a detailed analysis of the pricing process and discover which factors affect it. You will learn about demand and the demand curve and discover in which areas you should apply the principles of profitability management. At the end of the lesson, we will return to the airline case study, presenting data in a graphic diagram.
Lesson 3. Price discrimination
Introduction to the term ‘price discrimination’. We will analyze several real cases where this policy is applied. We will also discover the meaning of consumer surplus and how it impacts your pricing strategy.
Lesson 4. How do companies set their prices?
We will determine how individual prices are set and discover various types of price discrimination. Then we will cover the topic of demand elasticity and how this factor affects the final price.
Lesson 5. The magician’s case study. The two-door strategy
We will dissect a case study about a magician selling tickets to his shows. The objective will be to determine the prices that he should set for the last remaining tickets to maximize profits. This engaging exercise offers a practical take on pricing principles and will allow you to check your knowledge.
Lesson 6. How to set the right prices on products and services when demand is not defined?
Selling something in an uncertain environment always presents a risk. In this lesson, we will explain how you can insure yourself against this risk. Naturally, you can do this using the right pricing strategy. At the end of the lesson, as usual, we will give you an exciting exercise where you will calculate the optimal number of cheap and expensive tickets.
Lesson 7. Overbooking
We will discover the concept of overbooking, the reasons behind it, and whether or not you should use it. We will determine which pricing strategy can be used to maximize profitability. At the end of the lesson, we will explain why prices always increase before the departure date.
Lesson 8. Practical examples of Revenue Management. History and prospects for future development of technology
We will finish this course with several practical examples of applications of Revenue Management. We will discuss the potential for using effective pricing and profitability management technology today.