Tag: pricing models

supply management

Everything Brands Need to be Aware of When it Comes to Price Discrimination

What is price discrimination?  

Price discrimination refers to a pricing strategy that charges different customers different prices for the same product or service. This is one of the common competitive practices used by larger, established businesses in an attempt to profit from differences in supply and demand in the market or target customers. In this pricing strategy, the seller charges each customer the maximum price that they perceive the customer would be willing to pay. In more common forms of discriminating prices, the seller groups customers on the basis of certain attributes and charges each group a different price.

Types of price discrimination

For pricing strategies to succeed, businesses must have a clear understanding of their customer base and its needs. The most common types of price discrimination used include:request proposal

First-degree price discrimination

It is also known as perfect price discrimination, occurs when a company charges the maximum possible price for each unit consumed. As prices vary among units, the firm captures all available consumer surplus for itself.  In the modern business world, companies rarely practice such types of prices discrimination. In such types of price discrimination, businesses can accurately determine what each customer is willing to pay for a specific product or service. This makesit possible to sell that good or service for that exact price. However, it is time-consuming and difficult to master for most businesses. Here, sellers can capture the highest amount of available profit for each sale.

Second-degree price discrimination

It is a pricing strategy of charging a different price for different quantities consumed, such as quantity discounts on bulk purchases. Here, the ability to gather information on every potential buyer is not present. Instead, based on the preferences of various groups of consumers, companies price products or services differently. Businesses mostly apply second-degree price discrimination through quantity discounts; bulk purchasers tend to receive special offers and discounts that are not granted to those who buy a single product. This strategy does not completely eliminate consumer surplus, also it allows a company to increase its profit margin on a subset of its consumer base.

Third degree price discriminationprice discrimination

Third degree price discrimination occurs when different consumer groups are charged different prices. Third degree price discrimination is the most common strategies today that several players in the market are adopting. This pricing strategy provides a way to reduce consumer surplus by catering to the price elasticity of demand for specific consumer groups. Common examples of third degree price discrimination include admission prices to amusement parks, movie theater ticket sales, and offers in restaurants. Consumer groups that may otherwise not be able or willing to purchase a product are captured by this pricing strategy, which eventually increases the company’s profits.

 


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IR36

Top 5 PCI Compliance Solutions Provider Securing Digital Payments

The world is moving towards a cashless economy with debit and credit cards being the preferred mode of payments over cash. The number of transactions processed by the card industry is growing significantly, and so is the concern for the security of payments and cardholder’s information. As a result, Payment Card Industry (PCI) compliance laws are put in place to reduce the risk of debit and credit card data loss. PCI compliance solutions include consulting and remediation solutions that help to fulfill the Payment Card Industry Data Security Standard (PCI DSS) and other requirements of organizations. PCI compliance solutions are used across industries such as BFSI, manufacturing, technology, media and entertainment, construction, healthcare, and retail. However, the rapid increase in adoption of digital payments modes within the e-commerce industry is driving the demand for PCI compliance solutions. The procurement market intelligence report for global PCI compliance solutions market forecast a CAGR of 7.3% for the period 2017-2022.

Request Free SampleVerizon

Verizon is an American telecommunication conglomerate and the largest wireless communication service provider in the US. The key services offered by Verizon includes wireless communications, mobility, internet of things, IT solutions and cloud, and business communications. Verizon’s PCI compliance solutions help clients to understand the requirements that affect business, avoid common pitfalls that increase risk, and navigate the road to compliance. In 2017, Verizon released a Payment Security Report, which demonstrated the correlation between organizations PCI compliance standard and their ability to defend themselves against cyber attacks.

AT&T

AT&T provides network, cybersecurity, and mobility services to businesses. The company provides services and solutions to end-user industries such as finance, healthcare, retail, hospitality, consumer goods, and transportation. AT&T offers a robust suite of solutions for PCI compliance including consulting, managed security, strong authentication, and project planning and management services. Here are some of the detailed solutions offered by the company:

Build and maintain a secure network·         AT&T Consulting Firewall Assessment Services

·         AT&T Managed Security Services

·         AT&T Managed Firewall Service

Protect cardholder data·         AT&T Encryption Services

·         AT&T VPN Services

·         AT&T Web Security Services

Maintain a vulnerability management program·         AT&T Endpoint Security Services

·         AT&T Managed Endpoint Security

·         AT&T Consulting Application Services

Implement strong access control measures·         AT&T Token Authentication

·         AT&T Consulting Secure Network Integration

·         AT&T Managed Hosting

Regularly monitor and test networks·         AT&T Internet Protect

·         AT&T Security Event & Threat Analysis

·         AT&T Security Device Management

Cisco

Cisco manufactures and sells networking hardware equipment and telecommunications equipment. It also provides solutions to ensure compliance with standards such as PCI and HIPAA. The company is also a member of the PCI Board of Advisors, Technical Working Groups, and DSS Special Interest Groups. On June 26, 2017, Cisco announced new training and developer programs for its 28,000 networking professionals at the company’s annual user conference to accelerate the adoption of internet-based networking.

IBM

IBM is one of the oldest technology company that provides hardware, software, and middleware apart from hosting services in areas such as mainframe computers and nanotechnology. The company offers a range of services for businesses including cloud services, business consulting, financing, analytics, unified communication services, and compliance services. Recently, IBM announced that it is teaming up with Toronto-based FinTech company, Dream Payments to generate new revenue streams from mobile payment solutions. The partnership has allowed Dream Payments to maintain bank-grade security, scale its cloud infrastructure, and improve PCI compliance and data sovereignty.

Trustwave

Trustwave Holdings in an American company that offers solutions to help organizations fight cybercrime, protect data, and reduce security risks. The company caters to industries such as education, restaurants, payment services, financial services, retail, and government. The company offers around-the-clock support, a full suite of PCI services, access to world-class PCI experts, and security portfolio that enables compliance. In 2017, the company was named the best PCI compliance provider for the second year in a row at the CNP Expo held in Orlando, Florida.

Read more about the top vendors in the PCI compliance solutions market along with pricing models, procurement best practices, supply market insights, and category management in SpendEdge’s upcoming report on the global PCI compliance solutions market.

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Top Ten Manufacturers in the Soybean Oil Market

Soybean oil, extracted from the seeds of soybean, is one of the most widely consumed cooking oil across the world. The cultivation and production of soybean oil date back to ancient China before 2000 B.C. Soybean oils are usually preferred over other vegetable oil for various health benefits including better heart health, improved immune system, improved growth, and reduced cognitive diseases. Soybean oil manufacturers and suppliers across the world are trying to increase their production volume as its application is extending beyond the food and beverage segment to various industrial applications. The recent procurement report from SpendEdge lists the top soybean oil manufacturers who are influencing the demand for soybean oil and soybean oil prices.

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Answers to the questions

Top Challenges Faced by the Cotton Suppliers within the Cotton Industry

Cotton production dates a long way back to the ancient civilization of Indus Valley of India and Pakistan, with some estimates believing cotton farming to be about 7,000-year-old. Cotton, as the modern world knows it, owes its existence to the industrial revolution in England and invention of cotton grin in the US. Although cotton is widely used in the textile industry for clothing materials, they have applications in other areas as well. For instance, cottonseed oil can be used for cooking and in products like cosmetics, soaps, pharmaceuticals, plastics, and rubber. The demand for cotton for various industries from APAC, MEA, and the South American region is driving the growth of the cotton industry (SpendEdge Report – Global Cotton Market – Procurement Market Intelligence Report). However, numerous factors are hindering the growth of this industry.Request Free Sample

Challenges Hindering Growth in the Cotton Industry

Growing Popularity of Synthetic Fibers

The demand for cotton fiber is slowing down due to rise in popularity of polyester in the textile and apparel industry. Increase in cotton prices and increasing lack of supply has led to the expansion of production capacities of purified terephthalic acid, which is the primary raw material for polyester. Companies in the textile and apparel industry are switching to polyester because of low-cost and durability.

Increase in Production Cost for Cotton

In comparison to most of the agricultural commodities, cotton has the highest per-acre energy costs. For instance, it can require more than 5,000 gallons of water just to manufacture a t-shirt and a pair of jeans. Also, cotton has a high dependence on oil prices for its energy costs in manufacturing and logistics of textiles and fabrics. In addition to energy costs, the cotton industry is also facing a shortage of labor, which is why suppliers are facing challenges to meet the supply quantity and delivery schedules.

Price Volatility in Cotton Industry

Cotton farming usually starts out in spring and require a favorable climatic condition. Natural disasters and change in weather could affect the demand-supply dynamics in the cotton market. For instance, Hurricane Harvey affected the cotton supply in the US leading to the shortage of materials and forcing the cotton suppliers to import cotton from other APAC countries, including China and India. Such fluctuations in the cotton prices could negatively affect the demand for cotton, and suppliers can opt for more stable alternate materials.

High Competition for Acreage Among Agricultural Crops

Crops such as rice, wheat, soybeans, and corn deliver consistently higher returns to farmers compared to cotton crops. Increasing demand for such staple foods will encourage the farmer to plant food crops instead of cotton crops. The report on the global cotton market – procurement market intelligence report from SpendEdge estimates that growth in demand for these crops can lead to a potential decline in acreage for cotton and could affect the supply globally.

Read more about the challenges in the cotton industry along with market trends, cotton prices, cotton supply chain, and key suppliers of cotton in SpendEdge’s upcoming report on the global cotton market.

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Procurement Research Report on the Global Computer Aided Design (CAD) Software Market Now Available from SpendEdge

Reduction in the overall cost of product development as organizations leverage prototyping and simulation capabilities of the CAD software is driving the adoption of the software.

LONDON: The procurement research report on the CAD software market is an indispensable part of SpendEdge’s IT category portfolio and offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. Furthermore, it also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Improvements in the design capabilities of organizations along with enhanced accuracy and convenience in terms of product development, which are attributed to the deployment of CAD software applications, are driving the adoption of CAD software across industries.

“Procurement managers must engage with suppliers having expertise in their business segment,” says Bhuvaneshwari Udayakumar, an IT industry procurement research specialist at SpendEdge.

Procurement managers face interoperability issues in integration with CAE analysis such as structural mechanics, electromagnetics, and fluid dynamics. In integration of CAD with computational fluid dynamics translation errors regarding holes, floating point arithmetic, and tolerances arise in the design. The scope of such errors in the system affects the reliability of the integration, thus becoming a pain point for procurement managers.

 

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This procurement report on the CAD software market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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procurement risks

Procurement Research Report on the Global TV Advertising Market Now Available from SpendEdge

Increased penetration of D2H across geographies has propelled the growth of the global TV advertising market.

LONDON: The procurement research report on the TV Advertising market is a necessary part of SpendEdge’s marketing category portfolio and offers a detailed analysis of the key factors influencing the supply market, sourcing and procurement decisions, pricing models, and procurement best practices. Furthermore, it also offers profound insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Increased spend by end-user segments, such as online businesses, followed by food chains, cosmetics products, and personal care products, on TV advertising has led to the growth of the global TV advertising market. The rise in spending of end-user segments is attributed to factors such as an increase in their marketing budget.

“Purchasing managers must partner with service providers that possess technological capabilities such as programmatic buying and geo-targeting,” says Tridib Bora, a marketing industry procurement research specialist at SpendEdge. “This provides cost-saving opportunities in terms of reaching target customers at a low cost and ensures the reach of the TV advertising campaign to the right target audience,” added Tridib.

It is difficult to identify service providers that possess the expertise and have capabilities to create innovative campaigns that can attract an audience and stand out in the TV advertising space. Collaborating with service providers that have low proficiency and limited service portfolio may result in poor campaign performance in terms of converting sales.

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This procurement report on the TV advertising market offers insights on:

  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • Key suppliers and assessment of their capabilities
  • For a comprehensive, detailed list, view our full report

 

 

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Procurement Research Report on the Global Banking Services Market Now Available from SpendEdge

The increase in banking channels, such as web-based and mobile-based access channels, offers more opportunities to deliver banking services.

LONDON: The procurement research report on the banking services market is an indispensable part of SpendEdge’s financial services category portfolio and offers a comprehensive explanation of the key factors influencing the supply market, procurement decisions, pricing models dynamics, and procurement best practices. Furthermore, it also offers an in-depth analysis of the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Adoption of better monetary policies, such as low interest on loans in emerging countries, leads to high demand for business loans, which subsequently drives the growth of the global banking services market.

“Purchasing managers must engage with service providers that aid them in identifying their needs and provide appropriate services,” says Bhuvaneshwari Udayakumar, a financial services industry procurement research specialist at SpendEdge.

Clients find it difficult to assess the regional regulatory compliance of banks because of lack of transparency in regulations. As a result, engaging with such service providers will impact buyers’ operations because they will have to face issues that arise because of non-compliance.

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This procurement report on the banking services market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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Procurement Research Report on the Global Financial Reporting Software Market Now Available from SpendEdge

North America and Europe are the largest markets for financial reporting software due to the presence of global banks, financial institutions, MNCs with high reporting requirements, stringent regulatory framework, and excellent data protection and privacy laws.

LONDON: The procurement research report on the financial reporting software market is an indispensable part of SpendEdge’s IT category portfolio and offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. Furthermore, it also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

The banking and financial services industry is the major buyer of the financial reporting software market. The increase in regulatory requirements due to major financial debacles around the world has also played a crucial role in the growth of this market.

“Businesses must assess the strength of the cloud security provided by the supplier by using a cloud controls matrix,” says Bhuvaneshwari Udayakumar, an IT industry procurement research specialist at SpendEdge.

One of the major challenge faced by procurement managers in procuring financial reporting software is the data security and privacy. The storage of data in public cloud, which is shared by multiple clients, exposes the businesses to the risk of data manipulation and exploitation by competitors.

 

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This procurement report on the financial reporting software market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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Procurement Research Report on the Global Air Quality Monitoring Market Now Available from SpendEdge

The growth of air quality monitoring equipment is attributed to the increasing environmental stringency and emission checks in the construction, mining, pharmaceutical, and chemicals industries to keep track of the level of pollutants in a certain region.

LONDON: The procurement research report on the air quality monitoring market is an indispensable part of SpendEdge’s facility management category portfolio and offers a comprehensive assessment of the key factors influencing the supply market, strategic procurement decisions, pricing models dynamics, and procurement best practices. Furthermore, it also offers an in-depth analysis of the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Government agencies across different regions are increasingly spending on environmental protection activities which are leading to the growth of the air quality monitoring market. Moreover, countries are increasingly investing in building sustainable ports and cities by reducing air pollution levels. This requires regular monitoring of the air quality resulting in greater demand for air quality monitoring systems.

“Procurement managers must collaborate with air quality monitoring equipment providers that have expertise in dealing with air monitoring requirements across a wide range of sectors such as airports, mining, and construction,” says Tridib Bora, a facility management industry procurement research specialist at SpendEdge.

Most of the businesses are using air quality monitoring equipment across multiple locations, such as warehouses, production sites, and docking yards. The spend for all these equipment in terms of maintenance cost and fuel is managed across these distinct locations individually. Hence, it becomes difficult for procurement managers to map the operational spend on the air quality monitoring equipment across various locations, resulting in spend leakages.

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This procurement report on the air quality monitoring market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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Outsourcing services

Procurement Research Report on the Global Dairy Derivatives Market Now Available from SpendEdge

An increase in the production and consumption of dairy products in developing economies such as India and Turkey are likely to drive the growth of the global dairy derivatives market.

LONDON: The procurement research report on the dairy derivatives market is an essential part of SpendEdge’s agro commodities and raw materials category portfolio and offers a complete analysis of the key factors influencing the supply market, pricing models, substantial procurement decisions, and procurement best practices. Furthermore, it also offers deeper insights into the supply chain risk management practices, key market developments, and demand-supply shifts to help procurement experts make effective procurement decisions.

The potential of dairy products to help maintain muscle mass among the aging population is one of the key reason fueling the dairy derivatives market. The dairy proteins are among the most adopted proteins due to their amino acid profile. The consumption of dairy proteins has increased in emerging markets due to rising disposable incomes and consumers transitioning toward being health and fitness conscious. This is promoting the use of specialized sports nutrition dairy products to achieve health and fitness.

“Purchasing managers must engage with suppliers that promote and practice sound upstream supply management practices,” says A Kowshik, an agro commodities and raw materials industry procurement research expert at SpendEdge. “Suppliers must have a reliable, high-quality supply chain that has comprehensive quality,” added Kowshik.

Dairy products are highly perishable in nature and require a complex set of operations and logistics such as cold-chain to ensure freshness and safety. However, the emerging yet fast-growing still have under-developed sales and distribution channels. This poses a challenge for suppliers to introduce dairy products that have a low shelf life in these countries.

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This procurement report on the dairy derivatives market offers insights on:

  • Key suppliers and assessment of their capabilities
  • Negotiation strategies and cost-saving opportunities
  • Supply markets, growth drivers, trends, and challenges
  • Pricing models and category innovations
  • Procurement best practices
  • For a comprehensive, detailed list, view our full report

 

 

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