Pricing Analysis

To ensure market penetration and sustained profitability, Waste Management Inc. has adopted a dynamic pricing strategy grounded in scenario modeling, cost analysis, and demand elasticity.

The pricing model integrates operational cost structures, regional demand forecasts, and competitive benchmarking to optimize revenue generation from Waste Management's redesigned service offering: bundled waste collection and ESG-compliant disposal analytics.

Sales Strategy Overview

The company will deploy a tiered pricing model based on service volume and compliance integration. Domestic (regional) clients will be segmented by municipality size and regulatory burden, while foreign (internet-based) clients, primarily multinational firms, will be offered subscription-based analytics dashboards with ESG reporting capabilities.

Pricing tiers are modeled using EMV (Expected Monetary Value) and Bayesian probability to forecast uptake across segments. Power BI dashboards visualize cost-to-serve, projected margins, and customer lifetime value (CLV), enabling real-time adjustments.

CAPS TITLE

Causal Loop Diagram –

Domestic (Regional) Sales

This system dynamics model captures feedback loops between pricing, demand, service quality, and operational capacity for regional clients.

This diagram supports strategic pricing decisions by visualizing how internal and external forces interact over time.

Stock and Flow Model
Foreign Sales
(Internet-Based)

This model simulates the flow of international demand through digital channels, focusing on analytics subscriptions and ESG reporting services.

Stocks (Boxes)

Flows (Arrows)

Summary

Foreign clients flow into Subscription Sign-Ups, which increase Active Subscriptions.
More subscriptions drive ESG Report Generation and require scaling Service Capacity.
Technical Support Staff is adjusted through Hiring and Attrition, impacting capacity and report delivery.
ESG Report Inventory reflects backlog or surplus, influencing client satisfaction and renewal rates.