What we can learn from Vail Resorts' new "Epic" pricing strategy

Posted by Alex on March 9, 2019

Vail Resorts Image

Vail Resort’s “Epic Pass” changed the ski industry when it was first released a decade ago–I would argue, for the better–even though it was directly coupled with massively more expensive day passes (sometimes 2x prior prices). Since it first launched in 2008, the pass has grown, and as a result, the pricing structure became more convoluted, with too many options to choose from. However, their latest update to pricing features a streamlined pricing structure and demonstrates how a well-crafted pricing strategy can evolve over the years.    

Read More >>

Using a backtest to choose Dynamic Pricing software

Posted by Alex on January 18, 2019

Dynamic Pricing software takes data and turns it into actionable real-time prices. At Perfect Price, we've learned a lot about how executives assess and decide on using our software. We think this process could work well for evaluating any software that an enterprise is trusting to make decisions on its behalf.

Read More >>

Costs and Car Rental Revenue Management

Posted by Alex on August 30, 2017

Most companies optimize prices to either gain marketshare or maximize profit. When marketshare is the goal, costs can largely be ignored–assuming you are a company such as Uber or Amazon and can afford to lose a lot of money for a long time, you price primarily to stimulate demand. When profit is the goal, you have to know your costs to set prices.

Read More >>

How ACE Rent A Car eliminated no-shows with price optimization

Posted by Alex on June 20, 2017

Imagine putting on a performance for an audience–but nobody shows up. Sucks, right? Some people just lived with that reality, figuring, it's normal. But Kevin Stutz, CEO of Ace Rent A Car, thought differently.

Here's how Kevin took on an industry scourge–the no show–and won. With real numbers.

Read More >>

What launching rockets can teach us about revenue management

Posted by Alex on April 25, 2017

Would you promise to send a rocket to Jupiter before you proved you could get one into space at all?

Read More >>

How to test a new pricing model without changing anything

Posted by Alex on October 19, 2016

Have you ever wondered, what would happen if we made a big change to pricing? I don't mean try ending a few prices in $0.99 or $0.95. No. I mean changing everything!

Read More >>

Answer these 2 questions to know if dynamic pricing will work for your business

Posted by Alex on September 26, 2016

Ever wonder why some companies can charge different prices at different time–like United Airlines, or Uber–while others, like Walgreens, don't? Academcis have long had 5 tests to determine if dynamic pricing could work for an industry. With machine learning, we're reducing that to just 2. Read on to learn what separates dynamic industries from those stuck in the 20th century.

Read More >>

Can my company optimize prices?

Posted by Alex on September 19, 2016

Does price optimization work for today's businesses?

Price optimization means improving the performance of the price aspect of your marketing mix (also known as the 4P's, product, price, place and promotion). Price optimization  leverages data to drive more revenue or margin by adjusting the price or prices customers see and pay.

Read More >>

Two Biggest Challenges to Implementing Dynamic Pricing

Posted by Alex on August 22, 2016

Many people think dynamic pricing is crazy–witness this 50x surge Uber once saw. At today's exchange rate, that 425 KR is $50 USD–per minute. But is customer reaction to this the biggest challenge? 

Read More >>

Price Optimization - What's Your Strategy?

Posted by Alex on July 12, 2016

Price is one of the four key elements of your marketing mix. It’s an incredibly important one because it determines how you position your product or service, and also affects other elements of marketing, like product features, channels, distribution, promotion and more. So, knowing how to price products is crucial – if you don’t know how or don’t have a working strategy in place, it could be costing you a fortune without you even realizing it. How do you go about assessing whether or not you have a solid a price optimization strategy in place?

Read More >>