Pricing strategy is fundamental to optimum revenue management. At the very basic level an optimum pricing strategy is: Selling the right product to the right customer at the right time. However successful pricing strategy is not one-size-fits-all. The right choice of cost-based pricing, market-based pricing, dynamic pricing, price skimming, and other strategies is business, product and market dependent. Together with the right pricing strategy, mathematical optimization, and choosing the right solver for your computation plays a crucial role in demand forecasting and revenue maximization.
In this technical notebook we show how using the NAG Optimization Modelling Suite to solve pricing problems allows you to simulate and develop your pricing strategies to achieve maximum revenue growth for your product. We throw in complex market conditions and demand fluctuations to make the problem harder, and guide you through the strategy formulation, mathematical model set-up, and problem execution. See how to outperform your competition in a dynamic fast-moving market with a highly efficient, performant, and simplified pricing strategy.