One word: Pricing!
For years, Spotify dominated music streaming! 🚀
Yet, they kept losing money - hundreds of millions. 🙄
Then, in 2023-2024, they did something bold: they raised prices!
The result?
👉 Subscriptions kept growing
👉 Revenue surged
👉 Profits flipped from a €0.5B loss to over €1B in profit
A clear case of Excess Demand (see Quick Win Type 3 for more) where you are holding back keeping prices low when instead you can increase your sales at even higher prices! 😉
The lesson? 💡
Most businesses focus on revenue and costs.
But the real profit lever? Pricing.
Want to improve profitability? Don’t just cut costs or push for more sales - optimize your pricing!
Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?
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