Tim J Smith

A margin variance analysis measures the sources of difference in gross margins between pieces of business within a larger set of business. When the piece of business is defined as the the total sales to an individual customer over a period of time, sales and marketing managers can use this analysis to define customer specific engagement strategies to improve customer profitability. In this paper, we clarify how customer engagement strategies can be driven by a margin variance analysis, provide… Show more

A margin variance analysis measures the sources of difference in gross margins between pieces of business within a larger set of business. When the piece of business is defined as the the total sales to an individual customer over a period of time, sales and marketing managers can use this analysis to define customer specific engagement strategies to improve customer profitability. In this paper, we clarify how customer engagement strategies can be driven by a margin variance analysis, provide derivations of two equally-valid forms of a simple customer margin variance analysis, and demonstrate the margin variance analysis and the development of customer-specific engagement strategies with a case study example. Show less

We extend the normalized approach to constructing profit bridges proffered in a recent paper to examine the impact of currency exchange rate fluctuations within a multinational corporation. In doing so, we describe a profit bridge that would measure corporate performance distinct from that which would measure the performance of business units, including metrics for the impact of volume, price, variable cost, offering mix, and exchange rate changes.

A set of definitions and equations for measuring the impact of changes in quantity sold, price, variable costs, and mix between two time periods on the business’s profitability are provided. The recommended decomposition of the changes in profit is then compared with four other seemingly rational decompositions using hypothetical two-product firms. The comparisons demonstrate the importance of using a proper decomposition in constructing a measurement of the impacts of changes in quantity sold,… Show more

A set of definitions and equations for measuring the impact of changes in quantity sold, price, variable costs, and mix between two time periods on the business’s profitability are provided. The recommended decomposition of the changes in profit is then compared with four other seemingly rational decompositions using hypothetical two-product firms. The comparisons demonstrate the importance of using a proper decomposition in constructing a measurement of the impacts of changes in quantity sold, price, variable costs, and mix on the profitability over other formulations and prior art. This normative decomposition of the profit bridge measuring the impact of changes in marketing activities is used as part of the intelligence mosaic in executive and investor decision-making. Show less

Practical guidance and a fresh approach for more accurate value-based pricing

Pricing Done Right provides a cutting-edge framework for value-based pricing and clear guidance on ideation, implementation, and execution. More action plan than primer, this book introduces a holistic strategy for ensuring on-target pricing by shifting the conversation from 'What is value-based pricing?' to 'How can we ensure that our pricing reflects our goals?' You'll learn to identify the decisions that… Show more

Practical guidance and a fresh approach for more accurate value-based pricing

Pricing Done Right provides a cutting-edge framework for value-based pricing and clear guidance on ideation, implementation, and execution. More action plan than primer, this book introduces a holistic strategy for ensuring on-target pricing by shifting the conversation from 'What is value-based pricing?' to 'How can we ensure that our pricing reflects our goals?' You'll learn to identify the decisions that must be managed, how to manage them, and who should make them, as illustrated by real-world case studies. The key success factor is to build a pricing organization within your organization; this reveals the relationships between pricing decisions, how they affect each other, and what the ultimate effects might be. With this deep-level insight, you are better able to decide where your organization needs to go. Show less

This module will explore differing price structures in the restaurant industry and the managerial tradeoffs made in selecting the optimal structure to fit specific restaurant situations. Firms create effective pricing structures based on economic and marketing factors including target market selection, costs, market segmentation, customer behavior, etc. Understanding the unique market structures and cost structures associated with each price structure facilitates the design of the pricing… Show more

This module will explore differing price structures in the restaurant industry and the managerial tradeoffs made in selecting the optimal structure to fit specific restaurant situations. Firms create effective pricing structures based on economic and marketing factors including target market selection, costs, market segmentation, customer behavior, etc. Understanding the unique market structures and cost structures associated with each price structure facilitates the design of the pricing structure which maximizes profit and customer traffic. Dominant price structures that will be examined include a la carte, Buffett, Fixed Price Menu, Tiered, and Pay What You Want, as well as their derivative price structures of Add-on and Two-Part Tariffs. Students will learn the details of these pricing structures to enable managerial decisions and guide restaurant policy. Show less

Learn how to make pricing decisions that will maximize a firm's profits by creating and capturing customers with PRICING STRATEGY: SETTING PRICE LEVELS, MANAGING PRICE DISCOUNTS AND ESTABLISHING PRICE STRUCTURES. Written by recognized pricing thought leader and principal of a successful pricing firm, Tim J. Smith, this comprehensive book emphasizes the stakeholder's importance in making decisions, while highlighting key trade-offs to consider when choosing between opposing outcomes. In this… Show more

Learn how to make pricing decisions that will maximize a firm's profits by creating and capturing customers with PRICING STRATEGY: SETTING PRICE LEVELS, MANAGING PRICE DISCOUNTS AND ESTABLISHING PRICE STRUCTURES. Written by recognized pricing thought leader and principal of a successful pricing firm, Tim J. Smith, this comprehensive book emphasizes the stakeholder's importance in making decisions, while highlighting key trade-offs to consider when choosing between opposing outcomes. In this book's balanced presentation of quantitative instruction and qualitative concepts, learn more about the influences that should guide your decision making. Show less