Why We Love @RISK Software

Why We Love @RISK Software

If you are a middle market business CFO or CEO, get a copy of @RISK software from Palisades. @RISK uses Monte Carlo simulation to run risk analysis showing the multitude of possible outcomes in your spreadsheet model and shows how likely they are to occur.

Spotlight on Pricing with George Stelling

Spotlight on Pricing with George Stelling

As an executive and private investor, George Stelling has helped many struggling businesses improve their gross margins and profits. During his career, George has developed innovative pricing strategies, managed and restructured pricing organizations, and changed the fundamental tenants of pricing tactics management in technology and consumer companies. “Companies that undertake price-management improvement programs with a point of view that understanding price elasticity differently typically see between a 3 to 5 percent improvement in profits after eighteen months,” he says. Like many people’s personal cash flow controls, small changes in the management of pricing processes, policies, and strategies can make a huge difference in profits. The balance of supply and demand is sensitive — a decrease in price will expand demand and an increase in price will chase away customers. But the key is to segment your customers based on their willingness to pay for a certain product or service and to test various pricing methods and tactics. “Segmenting customers based on what they’re willing to pay,” says Stelling, “can be a powerful way to improve profitability in any business.” Understanding what the customer will pay The first step toward improving profits using price management is to understand what customers are willing to pay for a product or service and why they buy. In addition, it is critically important to analyze pricing variability, as you will often find that discounts, whether in the form of upfront price reductions or back-end rebates, influence a customer’s willingness to buy a product. “Understanding this ‘pocket margin’ — the real amount of money a company makes on a product or services after all discounts,...
Big Data’s Growth Spurt

Big Data’s Growth Spurt

The number of devices in the world and the data created by them is exploding exponentially — what will it look like in 2020? The Economist recently cited that half of the adult population of the world today has a smartphone (really a super computer, by historical standards) and that number will grow to 80 percent of the adult population by 2020. At more than 7 billion people in world today, with almost 58 percent over the age of 18, that is about 4.1 billion people with smartphones, generating almost 2.5 MB of data each minute. With all of our data creation — B2B transactions, tweets, emails, blogs, online video and games, clicks, likes, M2M transfers, etc. — our expanding digital-data universe highlights a compelling story about our needs and wants, our cultures, and our integrated world. This infographic from EMC tells the story of our journey and what the digital universe will look like by...
The Eurozone Currency Crisis: 4 Key Considerations for Business Owners

The Eurozone Currency Crisis: 4 Key Considerations for Business Owners

In our discussions with midmarket companies, we’ve noticed that most executives shrug their shoulders when the topic of the eurozone comes up. In fact, one CEO recently scolded us for our question: “Why should I care? I have no sales in Europe and it won’t impact me or my business.” Yet we believe, despite the EU recently delaying the issue around the fate of Greek debt, the outcome of the euro will have profound and long-lasting consequences for world markets, the global economy and U.S. business interests. Foreign policy considerations aside, the collapse of the euro or the partial unraveling of the eurozone will mark a turning point for American businesses of all shapes and sizes. It will usher in a period of economic turbulence, the likes of which U.S. businesses have not seen since the 1970s, when the Bretton Woods exchange-rate system crumbled. The ‘quantitative easing’ quandary For sure, the eurozone has been lurching from one debt crisis to another since 2008. The credibility of the European Central Bank (ECB) and its current quantitative easing program is suspect in terms of both its timeliness and its ability to resolve the underlying issues that are causing massive imbalances in Europe. In January 2015, the ECB said it would purchase sovereign debt starting in March 2015 until the end of September 2016, by which time more than 1 trillion euros would have been created under a formal quantitative easing program. Skeptics around the purchasing program abound. To promote economic stability, the EU pushed member countries to adopt various austerity programs post 2008. Typically, these austerity programs focused on cutting governmental...
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