• Post category:StudyBullet-3
  • Reading time:14 mins read

What you will learn

What are the discount rates you should set to maximize revenue of your products?

Optimizing prices with excel and python

Customized pricing with python

Customer analytics

The different pricing strategies that you should implement for different products.

The willingness to pay of customers

how to fit the demand with the right response function

How to differentiate products and pricing to different segments

The concept of nesting in revenue management and how to apply it

Retail

Profit

Data Science

Python

Description

Course Image by @agent_illustrateur-Christine Roy from unsplash.

Python Crash section included!

in the late seventies, airline ticket prices in the united states were regulated and almost fixed, we as customers did not have the luxury to opt for economy class or business class, only one class!! Back then American airlines were the leaders in the industry. But with deregulation new disruptors as People Express entered the scene with tickets so much cheaper than American Airlines. Customers migrated fromΒ  American airlines to the economic People Express.

what happened next changed the way we think about prices from merely making a profit to a strategic weapon that boosts business profitability and enhances product availability.

American Airlines introduced segmentation and revenue management techniques on its ticket prices “yield management” to attract People Express Customers back and People Express eventually went out of business. oh, I forgot to mention that American airlines’ profit increased by 47% that year.Β  Β And the rest was history.

This practice was then adopted by Ford for car rentals, Mariott hotels for room booking, NBC, and ABC for Ads placement to pretty much every business there is nowadays.

this course will take you on this exciting journey of understanding consumer behavior. how to set prices for your products to maximize revenue and enhance product availability. if you are running your own business, managing a product line, or even launching a new product or service, this course will come in handy to set you on the right path for success.

Not only this, Businesses now have hundreds of products and services if not thousands and we simply cannot optimize pricing for all of them with excel for example, that’s why the course introduces you also pricing and revenue management with Python. not to worry if it’s the first time for you with python, I show you how to do it step by step.

the course is full of lectures, concepts, codes, exercises, and spreadsheets. and we don’t present the code, we do the code with you, step by step, by the end of this course, you will be able to :

With excel :

  • The perishability of inventory
  • The different pricing strategies
  • The willingness to pay of customers
  • how to fit the demand with the right response function
  • Elasticity of products and how can we use them to set prices
  • How to differentiate products and pricing to different segments
  • The concept of nesting in revenue management and how to apply it
  • Applying little wood’s rule and EMSR to set booking limits for different service offering
  • Optimizing the prices for different product simultaneously
  • Markdowns

With python :


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Þ The basics of python, functions, and for loops

Þ Fitting demand with linear and logit functions

Þ Multi-product optimization

Þ Customized pricing.

Course Design

the course is designed as experiential learning Modules, the first couple of modules are for understanding pricing followed by applications using optimization.Don’t worry if you don’t know python, there are is a python fundamental section in the course to get you up and running with python.

Looking forward to seeing you inside and hope you enjoy the class.

Happy Mining!

Haytham

Rescale Analytics

English
language

Content

Introduction
Introduction
What is pricing?
History of Pricing.
Internal dimensions of price.
A perfectly Competitive market
The price market Dynamics
The early adaptors
Products Vs Services Vs Resources.
Characteristics of the service industry
Game changer
ERP systems
The evolution of E-commerce
Different pricing strategies
Price Dimension
Some Examples
Price Response function, Willingness to pay and Elasticity.
Intro
Linear Regression
Price Response function
Logistic Regression
Logistic Price Response function
Linear Price function estimation
Logit Price function
Simulating the price
Elasticity intro
Elasticity
Elasticity for logit and linear
Assignment
Answer
Some examples of elasticity
Willingness to pay
Point of maximum profit
Summary
Price Differentiation
Segmentation Intro
Grouping Customers
A practical example
Realized Profit
Profit with segmentation and without segmentation
Segmentation simulation 1
Segmentation simulation 2
assignment
Answer 1
Answer 2
Group pricing
Channel segmentations and Cupons
Volume Discounts
Volume discount Example
Optimizing profit with supply constraints
Variable Pricing
Non Variable pricing opttimization
Variable pricing optimization
Assignment
Variable pricing answer
Revenue management
Revenue Management Intro
Revenue management
The rest is History.
Allotment
Nesting
Revenue management Components and techniques
Capacity allocation
Littlewood example
Assignment
Answer
Multiple-class Fare EMSR-a
EMSR-a example
Assignment
Answer
Network management
airplane example
Linear programming 1
Linear programming 2
Overbooking
Network management assignment
Network management answer
Python intro
Installing Anaconda
Python History
Downloading Anaconda
Installing Anaconda
Spyder Overview
Packages
Python Crash section
Intro
Dataframes
Arithmetic Calculations with Python
Lists
Dictionaries
Arrays
Importing data in Python
Subsetting Dataframes
Conditions
Writing functions
Mapping
Forloops
For looping a Function
Mapping on a dataframe
For-looping on a dataframe
Summary
Assignment
Assignment answer 1
Assignment Answer 2
Linear response function with Python
Inventorize
Price function motivation with python
Simulating demand
Point of maximum profit
Assignemnt
Assignment Explanation
Linear Elasticity with Inventorize
Parsing dates
Getting list of Unique SKUs
Elasticity on multiple products.
Error handling for linear elasticity
Conclusion
Single optimization summary.
Assignment
Explanation
Logit Price response function
Logistic modeling with inventorize
Comparison between logit and linear
Logit for looping
Logit assignment
Logit Assignment answer
Multi-product optimization
Introduction
Competing Products
Relation among products
Multivariate regression in python
Multinomial choice models
Multinomial choice models part 2
Multi-competing products in python
Competing Products summary
Markdowns
Intro
Markdowns
Why we do Markdowns?
Customers segment to markdowns
Problem formulation
Markdowns for multiple periods
Setting up solver
Salvage value
Markdowns with forecasting
Sensitivity analysis
Markdowns for one period
Assignment
Customized pricing
Customized Pricing
Introduction
Difference between customized prices and list prices
Expected Contribution
Attributes in bid price response functions
Data exploration
Fitting interest rate
Simulations on interest rate
Probability P
Expected margin first model
Scaling the attributes
Modeling the logistic model
Cross validation
Modeling interaction