The Purchasing Power Parity (P3) Index Are you in full control of your pricing strategy across your locations, metros, regions, and globally?
Historically, organizations use high-risk methodologies to calculate their operational running costs and pricing strategies. In a world where attaining margins is becoming more difficult for all organizations, every dollar counts. Attaining parity has the potential to save organizations vast sums of money!
Achieving pricing parity on retail tariffs over multiple business locations is a dilemma for most foodservice and food retail organizations and has the potential to significantly impact and improve your overall business performance and health.
Did you know that the global swing in consumer pricing is up to +50% and as low as -50%? In the United States alone, this swing is between +25% and -25%. On a $10 check, this means your pricing opportunity could be between $7.50 and $12.50 parity to local market driving foot traffic and optimized margin.
The days of sending your managers out once a year with a clipboard to glean competitor pricing are now thankfully over. With the P3 Index and data science, you can have your fingers on the pulse in real-time, all of the time.
Many businesses default to using localized historical data to calculate consumer pricing. Was the original pricing correct in the first place? Over time was inflation incorporated into the price increases? Many times the process disregards the current local economic environment and conditions.
Leveraging data science, you can now adopt clear pricing strategies across multiple locations, taking into account local pricing, cost, affordability, and competitor pricing streamlining your program to optimize revenues and profitability.
P3 gives you a benchmark of current pricing differentials between locations and provides the baseline of what pricing should be based on current, and up to date, data.
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