Advanced Quantitative Methods in Discount Management at the Professional Pricing Society’s 25th Annual Spring Pricing Workshops and Conference
Immediately after the moment when prices have been set, executives are faced with the challenge of discounting. Discount decisions can consume more resources and cause more organizational strife than any other pricing decision. While some executives would like to eliminate all discounts, discounting is a form of price segmentation and can actually improve profitability when properly managed. Yet, without proper management and oversight, discounts will spread like a virus infecting every transaction and wreak havoc on profits.
In this workshop, we will look at the three commonly used tools for analyzing firm-specific discounting practices, and the four commonly used tools executives have to restrain them. We will also use economic models to show the value of discounting and the influences of Prospect Theory and Competition on discounting policy.
This workshop consists of in-class exercises applying quantitative approaches to monitoring discounts, enabling participants to apply these techniques to the datasets of their own companies.