Pricing strategy for an online automobile remarketing platform
Global Automotive Business

To develop a pricing strategy for an online automobile remarketing platform developed by the leading automobile auction company.  The company was developing and launching online services, and they wanted to explore alternative revenue models and pricing strategies to maximize profits for the exchange over time.


Customer segmentation was performed including an analysis of the value provided to each segment by the exchange’s services.  The segmentation included traditional auction activity and digital platform activity by customer.  Customer attributes, such as company size, geography, ownership structure, and length of relationship with the company were used for the segmentation.  Bundles were developed to target specific segments based on their observed auction activity and desired services.


An overall pricing strategy was developed in conjunction with product bundling and two-part pricing alternatives to allow customers to self-select themselves into customer segments based on their own valuation of the exchange’s products.

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