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: office@accentserv.ro .

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Email: office@accentserv.ro

www.accentserv.ro

Accent Serv International