Simulation: Impact of more accurate cost and willingness to pay calculation on margin


This simulation shows that a better knowledge of costs and willingness to pay at the transaction level drives to improved pricing decisions and translates into higher margins. It provides three lessons:

  1. Calculating the costs of each transaction can bring 10% margin
  2. A greater precision in cost calculation leads to a minimum 3% margin increase
  3. Assessing willingness to pay along with cost calculation drives to even better results

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