Pricimetrics makes software which helps companies maximize their profits by improving the way they allocate their resources. Among the decisions we help with are those involving pricing. Pricing is particularly interesting because it’s one of the fastest ways to make large, impactful changes. Launching a new marketing campaign can take weeks or months, launching a new product can take months or years, and a successful change in corporate strategy can take longer still.

But if it pricing changes can be made rapidly, it is important to be evaluate them quickly too. After all, you want to double down on what works, and reverse course where mistakes are made. Evaluating the results of a price change is difficult because of the sheer number of moving parts; was the change in profits due to pricing, a change in demand, an action by a competitor, random happenstance, or all of the above and more?

Because of the complexity of the problem, determining whether pricing was done right can be difficult and time consuming for a single SKU, much less than for hundreds or thousands of them. But evaluating the past is necessary to determine what to do in the future. So having a process to measure past results is vital, whether you use your internal processes, hire a consultant, or use software such as Pricimetrics Max.