What ways can you think of to improve this model? Are there other customer or product dimensions you would recommend that Fjord collect in the future that might provide opportunities for further segmentation? Can you think of any business rules or other considerations that might restrict Fjord from pricing the way it might wish to price in order to maximize expected contribution?

Your final task is to recommend changes to the fleet-sales process to ensure that Fjord can capture the benefits from optimal pricing in the future. Historically, fleet sales staff have been incentivized based on the total revenue they generate during a quarter while they have the authority to price freely within certain guidelines. How should sales incentives be established to be consistent with the new process? Should sales staff ever be allowed to price outside the optimal prices? If so, under what circumstances? How should their performance be evaluated?

Answer rating: 100% (QA)

Answer 1 Ways to Improve the Model There are several ways to improve the model that Fjord has developed for pricing their fleet sales First they shoul... View the full answer