Putting an End to Folklore Pricing

Michael Vizard

One of the things that end users like to use analytic applications for is to investigate various pricing models and the impact they might have on profit and revenue. After all, the whole point of analytics and business intelligence is to figure out how to make more money.

But the folks at PROS are making a case that most analytics and business intelligence applications don't go far enough when it comes to analyzing pricing trends. According to Doug Fuehne, vice president of professional service for PROS, the nuances of various pricing options are too complex to effectively model except in an application specifically designed to analyze those types of trends.

Of course, a lot of this analysis is still being done in spreadsheets and various types of analytic applications. The question is how much money is being left on the table these days. And that, of course, is most companies' primary concern, especially when most sales people swear that the competition in undercutting prices.


The PROS application is linked to a database that allow managers to analyze pricing trends based on data from public sources as well as vendor Web sites. Otherwise, all you're really analyzing is folklore, says Fuehne, as opposed to factual models.

Fuehne isn't advocating the end of business intelligence. But he is questioning the way it is applied, because all too often we rely on one tool for everything, rather than a tool specifically designed for the task at hand.

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