The 12th DPC event was held on the 10th of October 2023 with a total of 26 attendees, including companies such as PhilipsBestSecretPhoenix Groupflaschenpost.deContorion and Flaconi.

Insights from Mojca Bertoncelj, Senior Data Scientist at 7Learnings

The Cornerstone of Competitive Pricing Wisdom

Mojca strongly emphasized the foundational role of data in the competitive pricing landscape. She remarked, “Acquiring accurate and relevant data is a persistent challenge. Our clients play a pivotal role in collecting competitor prices and historical information, forming the bedrock for effective pricing strategies.”

Unveiling Sales and Profit Narratives

Delving into the past, Mojca illuminated the critical role of historical prices in understanding sales, profit, and revenue trends. “Historical data is the compass for defining elasticity and calculating demand curves,” she explained. “It unveils insights into the intricate correlation between sales spikes and the dynamic interplay of competitor pricing.”

Strategic Navigation in the Pricing Landscape

Mojca introduced two prevailing strategies for the present, stating, “While price penetration is an assertive approach, it can lead to a perilous race to the bottom. Conversely, price matching, while seemingly straightforward, may oversimplify decision-making, potentially causing businesses to overlook valuable opportunities.”

From Undercutting to Price Skimming

In this chapter, Mojca delved into the spectrum of competitive pricing strategies. She cautioned against the pitfalls of an aggressive ‘race to the bottom’ mentality, highlighting the need to consider a product’s elasticity. “Nuanced strategies like price skimming offer an alternative, particularly effective for inelastic products or during market entry,” she advised.

Transcending Sales to Profit Margins

Mojca underscored the imperative to understand the holistic impact of pricing strategies. “Tools that comprehensively analyze the effects on sales, revenues, and profit margins are indispensable,” she emphasized. “Considering the long-term profitability, especially in scenarios like penetration pricing, is paramount for sustainable business growth.”

Harmonizing Competitor Insight with Predictive Pricing

In conclusion, Mojca advocated for a holistic approach, integrating competitor information with predictive pricing. “Competitive pricing is not a standalone strategy; it’s a harmonious part of a comprehensive pricing approach,” she concluded. “Businesses should test strategies, maintain a rollback option, and consider multiple facets of pricing for a resilient and adaptive model.”

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