The price is right! Or is it…?

April 25, 2022 in Analytics, Announcements, Data, Featured, Leadership, Uncategorized

An AMEND approach to pricing strategy for property management

The Challenge of Pricing

“Come on down!” shouts Bob Barker, as a very excited audience member dances their way to the stage. The Price is Right TV show drew people in with their challenge of guessing the price of products. Contestants see a product, and without much context, estimate a price that is as close to, but not over the correct price to win. 

The prizes and production elements add to the fun, but this mirrors decisions businesses make every day. Determining price for a new or existing product can be extremely difficult for businesses and teams, especially without visibility to the right market data.

On one of our recent projects, we sat down with a client with substantial experience in property management in urban, walkable neighborhoods to really evaluate what goes into their right price, and more importantly, what doesn’t.

The question at hand for a local property management company: Are our apartment units and commercial spaces priced at the optimal amount? With a number of properties spread across several urban neighborhoods with differing levels of renovations, finishes and amenity offerings, how do we determine the appropriate pricing levels?

Why pricing is important

Property management has faced many challenges over the last two years, so the question was especially relevant. Our client had internal data and years of property management experience but wanted to also utilize market data to complement that knowledge and experience, and understand an unbiased perspective on pricing.

Pricing their offerings too low creates a potential risk for losing out on revenue potential. Pricing offerings too high creates a potential risk for extended vacancies and losing out on revenue potential.

The Approach

Therefore, AMEND used a variable-based approach with external market data, coupled with qualitative input of key pricing factors from our client, to get them to that sweet spot of pricing.

We knew we needed external market data to understand current-state demand. We found multiple data sources we could tap into for our analysis. Once we pulled the data together, we ran a Stepwise AIC model to apply variables such-as number of bedrooms, number of bathrooms, square footage amount, and others to tell us about their importance in relation to price. After working with our client to better understand the variables, we specifically applied the results by zip-codes to analyze one-level deeper and capture the variation across Cincinnati and Northern Kentucky neighborhoods. After assessing the results and rolling out the math, we felt confident in sharing a data-driven pricing strategy with our clients.

The Solution

We were able to compare the pricing recommendations from the model output to their current pricing per property in Microsoft Power BI to easily evaluate the differences. This gave our client a starting point when deciding where to make pricing changes first. The data model and Power BI dashboard automatically update to pull in the most recent information.

The information elevates our client from a being in a price-guessing situation to making better price-informed decisions utilizing the data analyzed specifically for their properties and zip-codes. The Power BI dashboards also included a “what-if analysis” to enter potential future properties or spaces to determine the recommended price before hitting the market for the first time.

Give us a call!

The concept we used for property management pricing could be applied to other pricing strategies as well, such as construction management, real-estate, new or existing products, and more. The key is to understand what variables really matter to the price and focus in on those variables. That also provides an understanding what doesn’t matter, confidently guiding your team to focus on the aspects that are going to add the most value.

We love this type of work. It is exciting for us and our clients. We want you to have the same energy and excitement out of the right price as The Price is Right constants who just won a new car. If you would like to explore data-driven pricing strategy and recommendations, get in contact with us by filling out the form on our contact page!

Cincinnati Works and AMEND Forge Unique Partnership

April 11, 2022 in AMEND Culture, Announcements, Culture of Giving, Featured, Leadership, Why AMEND?

Local organizations work together to create opportunities, strengthen community

Cincinnati Works and AMEND share a mission to make lasting impact on the community, and today the organizations announce a unique partnership that will create new opportunities for our neighbors in need and the businesses that employ them.

Both organizations work with a wide range of local employers – Cincinnati Works as a non-profit workforce development agency and AMEND as a management consultant – and they will leverage their existing relationships to connect more willing, able job-seekers to local companies in need of a strong frontline workforce.

In addition, AMEND employees will volunteer at Cincinnati Works in multiple ways, including the non-profit’s job-readiness program and tax-preparation service, as well as consulting on projects that can improve Cincinnati Works’ staff capacity. At the same time, Cincinnati Works staff will consult and assist AMEND with its diversity, equity and inclusion initiatives.

“AMEND intends to maximize our partnership with Cincinnati Works by leveraging our time, talent, and treasure, which is a win for everyone involved,” said Paul Delaney, Partner and Chief People Officer. “It gives our team new challenges and opportunities for growth, while also having an outsized impact on the local community.”

Delaney noted that many of AMEND’s clients struggle to retain and develop their frontline workforce, which Cincinnati Works seeks to address through 1-on-1 career and financial coaching with unemployed and underemployed individuals. “Bridging these connections will create opportunities for so many,” Delaney said.

AMEND has been a longtime financial supporter of Cincinnati Works, and its team members have consulted on data analytics projects in recent years. The new partnership provides more ways for AMEND employees to connect directly with Cincinnati Works clients and have a tangible impact on their lives.

“AMEND has been a valuable partner to Cincinnati Works over the years, and we are excited to formalize and grow that partnership – which, in turn, will allow both organizations to grow our impact on the community,” said Peggy Zink, President & CEO of Cincinnati Works.

Doug Meiser Named Vice President of Data Science

May 19, 2021 in Analytics, Announcements, Data, Featured, Leadership, News, Technology

Kroger Exec Doug Meiser Brings Fortune 100 Experience to AMEND

AMEND has named Doug Meiser as Vice President of Data Science. Meiser previously served as Senior Director of R&D Engineering at Kroger and VP of Data Science at 84.51.

Meiser began his career as an intern at Kroger in 2004 while working on his MBA from Northern Kentucky University. Meiser previously earned his B.S. in Mathematics and Physics from NKU. Meiser specializes in leveraging math and data science to explore, improve, and innovate. His teams were instrumental in implementing real-time queuing systems, inventory optimizations, integrated logistics systems, and improving processes across many different verticals.

Geoff Marsh, Partner, shared, “We couldn’t be more excited to announce that Doug is joining AMEND to lead our Data Science practice. Doug’s track record for delivering ROI through Kroger’s Supply Chain and Operations is unmatched. He is an industry leader in driving transformation and understanding the ‘so what.’ Doug’s leadership will further cement AMEND as the premier Data Science service provider in the Midwest. Best of all, he brings an incredible work ethic, values, and family to the AMEND team.”

Meiser will play a critical role as AMEND continues to see accelerated demand for its offerings. The AMEND team has nearly doubled in size since last year, in part, due to COVID-19 and the desire for businesses to have real-time access to their data for decision making. The pandemic expedited the need for digitalization and has more enterprises moving towards data analytics solutions than ever before.

“The way the AMEND team talks about taking care of people and clients is what drew me to the company,” Meiser said. “I’m passionate about creating innovation through math and I’m excited to dive in and solve some hard problems that clients really appreciate.”

Meiser lives in Wilder with his wife Kelly and their three children. Their favorite pastime is to watch the kids at their basketball and soccer games.