Monday, January 27, 2014

Paying a High Price for Discount Management Methods?

U.S. retailers reported a 2.7% sales increase this holiday season despite succumbing to consumer pressure for deep discounts well before Black Friday. Proof that a discount pricing strategy is useful for driving traffic and short term sales – but is good for long term profit margins?

Tim Smith, Ph.D., CPP,
Founder and Managing
Principal of Wiglaf Pricing
How can discounting increase your profit margin long term?

Does discounting damage your market position and brand loyalty?

Discounting isn’t something most executives like to do since it can consume resources and cause organizational strife.  Yet, when properly managed, this form of price segmentation improves profitability. When not properly managed, discounts wreak havoc on profits.

Using in class exercises, Tim J. Smith, Ph.D., CPP, will apply quantitative approaches to monitoring discounts, enabling participants to use these techniques on their own company’s datasets. Pricing executives and analysts who attend can expect to discuss:
  • How discounting can improve profitability, lower market entrance prices, and increase volumes
  • Quantitative methods for measuring and monitoring discounting policy
  • Managerial and quantitative tools for restraining discounts
  • The influences of Prospect Theory and competition on discounting policy
Dr. Smith will be leading the workshop Advanced Quantitative Methods in Discount Management at the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore this April.

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