Revenue Management.Docx
Q1. How might revenue management be applied to a professional services firm (e.g. consulting), a restaurant, and a golf course? What rate fences would you use and why?
Revenue Management for a professional consulting firm:-
Revenue management for a professional services firm can be applied by defining different packages for major clients, minor clients & new clients. Model can be adjusted as fixed price model as well as fixed plus variable cost model. This can be further differentiated with proficiency level i.e. Junior and senior staff level.
Following rate fences can be used – 1. Major clients will be presented with fixed retainer cost plus variable cost as per work scope. Variable cost is billed by staff level. This provides flexibility to clients to control the cost based on level of expertise needed as well provide value of flexibility without major overheads. 2. Minor clients will be presented with fixed price model. Value of package is expenses predictability. 3. New clients are presented with fixed price model. A senior staff will manage relationship & act as a focal point to understand requirement & oversee service delivery. Value proposition is to provide upfront price and understand client requirement to establish long term relationship.
Revenue Management for a restaurant:-
Revenue Management for a restaurant should be based on demand-based pricing. For example, weekends are more busier, lunch time require quick service, seating plan can be determined depending on clientele and location,
Following rate fences can be used 1. Special offers during weekdays will provide value to clients and add revenue for restaurant. 2. Lunch menu will have limited packages to save order time and serving time. This provides value to clients to minimize wait time and reduce time duration per client. 3. Weekend menu will have wider choices with mix of prices. 4. Seating plan will be based on mix of 2 seat and 4 seat tables based on
Revenue Management for a professional consulting firm:-
Revenue management for a professional services firm can be applied by defining different packages for major clients, minor clients & new clients. Model can be adjusted as fixed price model as well as fixed plus variable cost model. This can be further differentiated with proficiency level i.e. Junior and senior staff level.
Following rate fences can be used – 1. Major clients will be presented with fixed retainer cost plus variable cost as per work scope. Variable cost is billed by staff level. This provides flexibility to clients to control the cost based on level of expertise needed as well provide value of flexibility without major overheads. 2. Minor clients will be presented with fixed price model. Value of package is expenses predictability. 3. New clients are presented with fixed price model. A senior staff will manage relationship & act as a focal point to understand requirement & oversee service delivery. Value proposition is to provide upfront price and understand client requirement to establish long term relationship.
Revenue Management for a restaurant:-
Revenue Management for a restaurant should be based on demand-based pricing. For example, weekends are more busier, lunch time require quick service, seating plan can be determined depending on clientele and location,
Following rate fences can be used 1. Special offers during weekdays will provide value to clients and add revenue for restaurant. 2. Lunch menu will have limited packages to save order time and serving time. This provides value to clients to minimize wait time and reduce time duration per client. 3. Weekend menu will have wider choices with mix of prices. 4. Seating plan will be based on mix of 2 seat and 4 seat tables based on