Revenue Management Labs: A Positive Push to the Incorporation of RMS

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Revenue Management Labs: A Positive Push to the Incorporation of RMS

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Avy Punwasee, Principal, Revenue Management LabsAvy Punwasee, Principal
With advancements in the areas of data analytics and AI, the scope of studying consumer behavior, optimizing resources, and maximizing revenue have widened. This has resulted in the incorporation of Revenue Management Solution (RMS) in businesses across different verticals. The number of companies providing RMS, either in a specialized sector or across multiple industries, has also seen a sharp rise, globally. This sort of market scenario gave birth to Revenue Management Labs (RML), a management consulting company that came into being after noticing a fundamental gap between the clients’ expectations and delivered solutions by the consultants. In an effort to bridge this gap and deliver sustainable revenue and profit growth to its clients, RML strives to bring forth a practical and customized pricing solution that drives bottom-line results.

Headed by Avy Punwasee, the Principal at RML and a veteran in the fields of Revenue Management, RML provides solution to its client companies in a structured manner and in a step-by-step process. Before getting into a final proposal with any company, RML starts with a comprehensive “data download” process to understand the company’s unique structure, goals, and strategies. Accordingly, it comes up with pricing solutions which are exclusive and customized for each company. Next, it presents an execution plan, because RML believes in delivering a practical solution that goes beyond a 100-page PowerPoint deck. RML also conducts an in-depth assessment of the client company’s Revenue Management maturity and provides customized training sessions at all the levels of the organization. While the assessment helps in studying and understanding the scope and scale of opportunities available in the company and in developing a roadmap to improve the company’s internal capabilities, the training session helps to address the Revenue Management performance gaps within the organization. This entire process of providing an efficient and all-encompassing Revenue Management Solution makes the clients self-sufficient in their business’s Revenue Management.

RML strives to bring forth a practical and customized pricing solution that drives bottom line results

RML has expertise in solving problems around strategies related to price, product, discount, and channel. In an effort to maximize long-term revenue and profitability of the business, RML strategizes the kind of price change that should be brought about and analyzes its short-term and long-term effects in the sales and the product mix. The company also decides on the right price concession and the final price of a product or service by comparing the price with the competitors in the market, and chooses the right channel partner before finalizing the investment level in each channel.

Started in 2015, now RML has companies such as Wells Enterprises, Edge Mechanical, Investigators Group as its clients. RML has also amassed a lot of achievements to its credit in deploying the right Revenue Management Solution. Once, a mid-tier transport service company, one of RML’s clients, started questioning their pricing structure. Despite frequent and regular price increases, the company didn’t experience any change in their net sales per pound. To address this situation they needed a demand sensitive tool which would show them the routes that were price sensitive and give them a model to evaluate the customer’s willingness to pay. RML built this tool for their client and accordingly created a segmented lane pricing strategy. Through a willingness-to-pay model, RML evaluated the individual lanes and set the correct price. RML also trained the internal sales team of this client company on the different tools they built. These strategies were not only executed but also regularly monitored, reported, and adjusted. Finally, with the incorporation of these strategies, the client experienced a 4.7 percent increase in net sales per pound.

The management at RML realizes the difficulty of those who are looking for help to solve business problems using analytics. Amid the confusion of hundreds of vendors, solutions, and technologies, and myths revolving around RMS-incorporation, RML tries to be the one-stop Revenue Management support not merely as a solution provider but as a partner of these businesses.