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Author here. You're absolutely right. The reason why I chose to do a revenue optimization rather than margin is that most industries that use this actively on t
by mistermcgruff 14y ago
Author here. You're absolutely right. The reason why I chose to do a revenue optimization rather than margin is that most industries that use this actively on their websites (hotels, cruises, airlines) treat costs as fixed and maximize revenue. For most other businesses though, this isn't the case. Doesn't change the calculus though.
And sorry the shitty hostgator site went down. Cache: http://webcache.googleusercontent.com/search?q=cache:rXK-EEuT_B8J:analyticsmadeskeezy.com/2012/10/08/revenue-management-for-meth-dealers-in-flint/+&cd=1&hl=en&ct=clnk&gl=us http://webcache.googleusercontent.com/search?q=cache:rXK-EEu...
- ljd 14y agoI just want to add that sites like hotels, cruises and airlines have demand based models that consider time which makes finding the right price a bit more complex that standard a standard revenue curve. We[0] solved this problem for ecommerce flash sale sites and event ticket sellers by creating a limited supply strategy that allows someone to give a starting quantity, current quantity and a start and end date to maximize revenue while trying to sell out all items. [0] https://ventata.com https://ventata.com