Scientifically Grows Revenue
You’re losing money. Perhaps not in the traditional sense, but nonetheless. You may not even know it; but if if you do, what can you do about it? You’ve spent good money on revenue management seminars and been awarded certificates of revenue management excellence, only to learn that your GM learned almost nothing executable. Simply, the seminar’s promises were a fraud.
For years, “revenue management experts” have been doling out revenue management certificates, after two-day seminars, as if they’d made your team pricing gurus. There’s only one problem… You didn’t realize that what they were selling was functionally impossible to deploy. Few, save perhaps a few savants on the planet, are fit to execute on the recommendations they’ve been promoting. It’s as though you were told that you could write the code for hyper-speed intergalactic space travel after two days of instruction, which would be cool; if it were possible.
Sadly, you’ve been played.
Perhaps the greatest risk to the long term success of any company is arbitrary, human led, price-setting. Widely used ‘cost plus’ and its cheap twin, ‘referential pricing,’ are deeply flawed and use few, if any, scientific rules. Major revenue loss from chronic mis-pricing is routine, given the human brain is generally incapable of managing the myriad of price impactors that drive inventory utilization.
Businesses that generate and manage perishable inventory (e.g. market dairy/produce, hotel rooms, parking spaces, golf course tee times, arena and airline seats, cruise ship berths, digital advertising, digital bandwidth, etc.) are particularly susceptible.