The hottest Revenue management Substack posts right now

And their main takeaways
Category
Top Finance Topics

Why Data Teams Need to Understand Metrics: A Look at Starbucks’ Comparable Store Sales

SeattleDataGuy’s Newsletter • 447 implied HN points • 08 Nov 24
đź’Ľ Business Metrics Data Analysis Corporate strategy Revenue management
  1. Data teams need to know the main numbers that matter for their business. This helps them understand how the company is performing.
  2. High-level metrics like revenue and expenses can seem too big to grasp. Breaking these down into smaller parts makes them easier to understand.
  3. These smaller, detailed metrics can reveal valuable insights that affect decisions and strategies for the business.

From selling access to selling work (and what it means for you)

Kyle Poyar’s Growth Unhinged • 512 implied HN points • 30 Oct 24
đź’Ľ Business Business Models Pricing Strategies SaaS AI Integration Revenue management
  1. Companies are shifting from charging for access to software to billing for the actual work done by AI. This means businesses will charge based on how much the AI helps them, like charging per task completed.
  2. With these new pricing models, customers can pay only when they see results. However, it can be tricky to figure out who deserves credit for any success achieved.
  3. As the industry evolves, businesses will have to rethink how they predict revenue and manage customer relationships, making it more about actual usage and outcomes instead of just subscriptions.

The Real-World Ravages Of Inflation

Behavioral Value Investor • 111 implied HN points • 28 Jan 24
đź’° Finance Economics Investing Inflation Government Policy Revenue management
  1. Inflation can erode purchasing power over time, leading to financial strain for workers like teachers.
  2. Budget constraints due to inflation can create challenges for both employees and employers in reaching fair agreements.
  3. Understanding historical trends can help predict future economic outcomes and guide investment decisions.

On Bags, Fanny Packs, and Airlines

Gad’s Newsletter • 20 implied HN points • 18 Mar 24
đź’Ľ Business Consumer behavior Revenue management Operational Efficiency Cost reduction
  1. Baggage fees are disliked by passengers, but they can lead to socially efficient outcomes by incentivizing customers to minimize their use of costly ancillary services.
  2. Charging for ancillary services like checked bags aligns customer behavior with cost-saving measures that benefit the airline and society, ultimately achieving greater operational efficiency and social welfare.
  3. The implementation of baggage fees by airlines can influence customer behavior, improve operational performance, and encourage passengers to travel with fewer bags, contributing to reduced costs and operational efficiency.

Financial Management: Pricing

Logos • 0 implied HN points • 16 Jul 20
đź’Ľ Business Financial Strategies Revenue management Market Analysis Consumer behavior
  1. Setting the right price for a product is about making sure the extra money you make from selling one more unit is equal to the cost of making that unit. This is called finding the optimal price.
  2. Promotions and different pricing tactics can help increase sales without permanently changing the list price. These include limited-time discounts and special offers like 'buy one, get one free'.
  3. Mixing different product types or sizes can attract various customers. Offering a basic option for price-sensitive shoppers and a premium one for those willing to pay more can boost overall profits.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Growth (Part 1): The Limits of Growth

Musings on Markets • 0 implied HN points • 26 Oct 11
đź’Ľ Business Business Growth Market Size Revenue management Valuation Techniques Investment Strategies
  1. When valuing growth companies, you need to think about how big their revenues can actually get based on the market size. Companies in larger markets can expect to earn more than those in smaller markets.
  2. Some companies can surprise everyone and grow more than expected by changing what they sell, expanding to new places, or coming up with new innovations. This can make their potential market much bigger.
  3. Investors often get the big picture right but mess up when looking at individual companies. They might think many businesses can grow quickly, but if they all try to take a big share of the market, profits can get squeezed.