Analyzing Rate Plans

The pricing manager runs a report each month to compare her company’s rates with other competitors in the service area. She needs to review the effectiveness of her company’s rate plans, the introduction of competitors’ rate plans, and the redesigning of new rate plans to capture the market share needed.

The pricing manager first runs a report that lists all the competitors, their rate plans, and the cents for each kWh for peak, off-peak, and weekend rates associated with each rate plan. This report gives her a good idea of the dynamics in the marketplace.

She next runs a report consolidating the customers’ inputs, choices and decision, for every single time the pricing calculator was run for a given time period, displaying the region, service (gas, electric, or both), competitor, rate plan, savings, and if they switched to National Energy. This data assists her in measuring the effectiveness of her rate plans in customer acquisition.