Revenue Management What Is It
Revenue recognition is one of the most important aspects of revenue management because it s so closely linked to a company s valuation.
Revenue management what is it. Revenue management is the application of disciplined analytics that predict consumer behaviour at the micro market levels and optimize product availability and price to maximize revenue growth. Revenue management strategies both be focussed on long and short term actions always weighing revenue and profitability against each other where low rates even be applied during high demand periods. Revenue management is a concept that not only maximizes revenue in periods of high demand it also helps stimulate demand in slower periods while avoiding pricing cannibalism. Providing gaap compliant reports is an absolute requirement for public companies and provides credibility for private companies looking for investors.
Revenue management flips that concept around and instead looks at what the customer is willing to pay for a certain product what margin you wish to have and based on that decide what the product can cost to manufacture. In this aspect revenue management as such can be applied to any industry or product.