WE PUT ‘ACCENT’ ON PROFITABILITY
Accent Serv International SRL
We tell you simple and concise:
We maximize your profit!
We aim to help you to increase your profits in short term, but in special, in the medium and long term.
Our business is about maximizing profits, but equally about crisis
management, problem solving, development, innovation and relationship
with customers.
A business always involves making important decisions about what
products/services to produce and sell, to whom, when, in what quantity
and for what prices/tariffs, considering the conditions existing on your
market. As a manager, you must adopt the most profitable strategy for
the business you run, to assume realistic goals that will bring maximum
profit from the exploitation of market potential. To achieve this, firstly it
is necessary to know which is the market potential and secondly, to
dispose of resources to capitalize it.
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To maximize profit, should be met specific correlations between inputs
and outputs, between different types of resources (capital and human)
between revenues and expenses, and for this must be determined the
demand function, the cost function and the production function, are
made numerous calculations, analyses and optimizations.
We defined our services in 5 categories:
Revenue management
Analysis and optimization
of inputs
Analysis and optimization
of costs
Risk evaluation and profit
maximization
Price strategies for
firms with market power
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Revenue management requires tactics and strategies based on data and using advanced analysis methods, it can predict consumer behaviour at the micro market level and optimizes product availability and sale price to maximize revenues.
You manage to get the maximum profit when you understand consumer
perception of product value and when you perfectly align the selling
prices, distribution and availability of the product to each customer
segment.
In other words, you need to sell the correct product / service , to the
correct client, at the right time and place, for the right price, in the
right amount and in correct packaging.
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Revenue management refers to a broad range of opportunities to
increase revenues. A company can use all these categories, as levers,
meaning that all are usually available, but not all can lead to revenue
growth in a given situation.
The main categories are :
Selling price
Stock
Marketing
Distribution channels
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Data collection and organization
Segmentation
Forecasting
Optimization
Dinamic re-evaluation 6
In order to improve your business results you need DATA.
For efficient revenues’ management, we must have relevant
information, accurate, real, on time, which can be used in concrete
actions, in tactics that lead to business development.
To this must be collected, stored and analysed data related to inventory,
prices, demand, competition, customer behaviour and other causative
factors.
We can help you identify and organize the data you need for completing
the following steps needed to increase revenue.
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After collecting the relevant data, the next step is customers'
segmentation in categories, to maximize the profit, based on pricing
policy.
The success of this step consists in grouping clients into categories for a
given product based on their response to the selling price, in certain
circumstances, delimited in time and space.
Specifically, it must set the value of the product at a time, for a market
segment as narrow as possible, and identify and configure customer
behaviour, so that to be able to establish a sale price to the upper limit,
for which is obtained the maximum profit.
For this is required a set of data that allows the identification and
delimitation of customers’ categories. This step is vital to the next stage
which refers to forecasting the demand for each segment of
customers. 8
At this stage, it is necessary to forecast numerous factors, such as
demand, stock availability, market share, total market.
Performance of this phase depends directly on the quality of the data
used and on the results of the analysis.
Forecasting is a critical task of revenue management and requires more
time for development, maintenance and implementation. Quantitative
forecasts use data sets (values) realized in time, charts (eg reservation
and cancellation curves, sales curves on customer categories etc)
allowing the forecasting of quantities to be achieved in the future
(reservations’ number, quantities sold ).
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Are made predictions based on prices, which aims to forecasting demand
as a function of variables such as the selling price of his own product,
marketing budget (you can make estimates for each type of promotion!),
prices of competitors, average salary on economy; or other specific
variables, for example, the distance at which the building is situated
towards access to a means of transport, for real estate, or the number of
cancellations of reservations for fields of activities, such as air transport
or rent-a-car.
Are made specialized forecasts, customer response models or prices’
cross-elasticity estimations, to predict customer behaviour at certain
price points.
By combining these predictions with calculated sensitivities of prices and
price ratios, a revenue management system can then quantify these
benefits and can develop strategies to optimize prices that maximize
revenue and profits. 10
As through forecasting, is estimated the market reaction (customers
reaction), through optimization is established how the company should
respond to the market changes in order to maximize revenues.
Often the optimization is considered the most important stage of the
management revenues process. Optimization involves an evaluation of
multiple options about how and to whom the product is sold.
Optimization involves solving two major problems in order to get the
biggest revenues possible and our specialists can do this for you.
The first involves determining the demand function to optimize the
objectives. A business must consider prices and the total sales
optimization, margins and sometimes the value made throughout the
product life cycle with one client.
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The second needs to consider the choice of technique used for
optimization.
For example, in certain situations it uses linear programming - a complex
technique - to determine the best result out of a set of linear
relationships to determine prices in order to maximize revenue.
In other cases, uses linear regression, which involves finding the ideal
relationship between several variables through models and complex
analysis.
One can opt for logistic regression (or discrete choice models) that could
be used to predict customer behaviour in order to sell them the right
products for the right price.
In this way a company can optimize its product offers, inventory levels,
and the prices in order to get the biggest revenue possible.
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Revenue management requires the company to
continuously re-evaluate the prices, products and
processes so as to maximize revenues. In a dynamic
market, to be effective, the management system must
constantly re-evaluate the variables, so that they
correspond to market dynamics.
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Companies are in business to manufacture and sell products and / or
services, and the success of their operation is given by the amount of
profit earned.
To get maximum profit managers must make optimal choices about the
quantities and types of inputs to be used in the production process.
In other words, decisions must be taken, both for short term and for long
term. This relationship which transforms inputs into outputs is summed
by production function.
The role of a manager is to ensure that the company operates
accordingly to the production function and that uses the correct quantity
of inputs so as to obtain maximum profit.
What does this mean? For example, for workforce, the management
must ensure that employees work at their full potential. In terms of
ensuring the level of inputs in production, management must ensure that
the company operates at the correct point of the production function to
maximize profit.
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resources to be used to maximize profits.
In this regard are determined the total quantity of product, the product
average and marginal product, the value of marginal product, marginal
rate of technical substitution, are made analysis on short term and long
term to determine the choice of optimal combination of capital and
labour that produces the maximum level of production.
Production function defines the
maximum amount of output from the
production process that can be
obtained with a given set of inputs.
It is important to determine the
productivity of inputs in production
(e.g. capital and human resources),
production process efficiency and
quantities of capital and human
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Cost minimization
After we know the production function and
what resources we need to achieve
maximum product, we must determine
the minimum cost with which we can
achieve this product. Why? Same result
from the production process can be
achieved with different costs, but we need
to know what combination respects the
condition of minimizing the cost of inputs.
Any change in costs of input directly influences the profit, so it is
important to minimize the costs of production for obtaining the
quantity of product that maximizes profit (according to production
function).
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Costs analysis
First we need to establish the cost
function; then are analysed the total costs,
fixed and variable costs, average values of
them, we identify the sunk costs. Is
determined the marginal cost and is
analysed the relationship between total
costs, fixed and variable costs in relation
with it, are made analyses and forecasts in the short and long term to
determine what measures should be taken to achieve the goals of
production, to increase and optimize cash inflows in company accounts
and to reach the desired profit for a given volume of production in
existing market conditions.
If there are several products / services that are produced by your
company, we verify if there are economies of purpose and
complementary costs, in order to determine how much of each product /
service must to be produced, in order to achieve a given level of
production with the lowest costs.
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In some cases, short-term losses are inevitable.
To determine whether the company should continue its activity and
under what conditions, it is necessary to check the relationship between
the selling price, total costs, variable costs, fixed costs and marginal cost.
In the analyses performed, we establish what resources you need and
how to use them to minimize losses and to get the profit in the shortest
time.
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The presence of uncertainty has a direct impact on customer behaviour
and therefore the management of a company must consider this risk in
predicting demand in decisions that are related to establishing the
quantities to be produced and the inputs in production and in estimating
profit.
We determine the maximum profit that you can get from your future
activity, or following the adoption of a project, where future demand is
affected by uncertainty.
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As managers of companies active in the markets, such as monopolies,
monopolistic competition and oligopolies you know that you exert a
greater or lower influence on prices of products and services offered on
the market.
It is important to set optimal prices that maximize company's profit.
Decisions establishing the optimal price that maximizes company profit
differs from company to another, depending on the basic structure of
your industry and the tools available (advertising, for example).
We establish price strategies to maximize profits, appropriate to your
industry and to structure of your company, using information already
available in the company and on the market, and price strategies more
advanced that identify profit opportunities to bring to the company even
higher profits by extracting surplus from consumers.
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We hope that you understand what important things, challenging and
creative of value, we do. Profit maximization requires complex
knowledge and activities that require data, calculations, specialized
analyses and experience.
Profit maximization should be the main objective and quantifiable of
management and of the strategy of any company.
About tariffs and values....
We always bring our clients through our services, more value than the
tariffs charged for them. The health of your business lies in the
company's ability to produce profit in the medium and long term, so do
not hesitate to contact us to verify if you function optimally to achieve
maximum profit.
Working with us and allocating the necessary resources, you may earn a
minimum of 1-3% from turnover in one year.
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In many cases, this percentage has meant the survival of the company on
the market, and for employees, the safety of keeping the job for a
longer period of time.
For managers who receive bonus based on profit, working with us will
bring them higher personal benefits, proportional with profit growth.
For shareholders, whose main purpose is getting a bigger profit, we can
only bring them great news: by using our services you get maximum
profit in the existing market conditions.
For tariffs and conditions of collaboration, please check the catalogue
with tariffs.
For more details please contact us by email at: [email protected] .
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