In today's business landscape, pricing strategies play a pivotal role in determining a company's competitiveness and profitability. Multifamily organizations are left with the crucial decision to determine what works best for them when selecting who to partner with for their pricing advisory services. As an organization that provides specialized pricing advisory services, Revenue Edge offers a unique set of advantages that can significantly impact a company's bottom line. To illuminate this point, let’s dive into the benefits of opting to use a personalized pricing advisory service, vs the alternatives of employing an in-house revenue manager or outsourcing the service to the software providers.
Revenue Edge vs Software Provider
1. Partner-Centric Support vs Tool-Centric Promotion
At Revenue Edge, our revenue management services are designed to assist our partners in achieving their revenue goals through the use of various revenue management solutions. Our primary objective is to provide unwavering support to our partners in effectively utilizing their chosen revenue management tool. In contrast, the software providers can find themselves relying on the strength of the revenue management tools, while our Revenue Managers have the benefit of making objective decisions unencumbered by relationships or commitments to the software.
2. Flexibility vs One-Size-Fits-All Solutions
As a boutique-style organization, Revenue Edge prides itself on tailoring all services, including pricing call frequency, duration, reporting, and training, to the specific needs of each partner. This level of customization ensures that our services align seamlessly with our partner’s unique business dynamics. In cases where partners utilize multiple revenue management solutions across their portfolio, Revenue Edge offers the distinct advantage of providing cohesive services and consolidated reporting despite the use of multiple platforms —a flexibility often unavailable when using the software providers' pricing advisory services.
3. Software Access
The software providers are faced with competitive constraints that Revenue Edge does not encounter given that we do not have a proprietary software solution. Our ability to work and maintain close relationships with multiple property management and revenue management systems allows us to meet the needs of our partners.
4. Greater Bandwidth
The revenue managers at Revenue Edge oversee about 50% fewer communities than revenue managers employed by the software providers. This translates to significantly greater bandwidth and opportunities to engage in more in-depth and meaningful discussions around our partner's pricing strategies. Additionally, our team utilizes this advantage to dive deeper into the revenue management system settings and more comprehensive reporting to provide greater insight into strategy-related discussions.
Revenue Edge vs In-House Revenue Management
1. Neutrality and Facilitation vs Conflicting Objectives
An in-house revenue manager may face the challenge of being pulled in multiple directions due to internal competing goals and objectives. This juggling act can lead to a struggle without clear guidance on which goals and objectives are most important. By outsourcing this responsibility to Revenue Edge, our revenue manager remains objective—staying solely invested in the overall success of the community. This allows for the facilitation of productive discussions among all groups, leveraging the revenue management solution to align toward common goals. The Revenue Edge revenue manager also provides valuable insights into potential outcomes and consequences of specific decisions, ensuring that all disciplines work with pertinent information before finalizing a strategy.
2. Broad Operational Exposure vs Limited Perspective
Revenue Edge brings a wealth of experience, exposure, and knowledge derived from diverse operational strategies across various markets and product types. All Revenue Edge team members have the benefit of years of on-site management experience, communicating with key decision-makers at all levels. Through this extensive exposure, our Revenue Managers have had the opportunity to observe and employ a wide variety of strategies from different partners in various markets, allowing us to share valuable experiences and insights to focus on our partner’s success. This broader perspective contrasts with the potentially limited exposure of an in-house team.
3. Cost Efficiency and System Maintenance
Outsourcing revenue management to Revenue Edge not only avoids the expense of carrying the payroll burden in-house but also alleviates the need for in-house teams to stay up to date with system enhancements and changes. Revenue Edge takes on the responsibility of staying abreast of the latest developments and software updates, ensuring that the partner benefits from an optimized and up-to-date revenue management system without the additional workload on internal teams.
When choosing between a personalized pricing advisory service provider, like Revenue Edge, and software providers or managing an in-house team, the former emerges as the optimal choice. Revenue Edge excels in neutrality, collaborative facilitation, operational breadth, and cost efficiency.
Partnering with Revenue Edge will help your company capitalize on all the efficiencies a revenue management program can offer. Our revenue managers help drive profitability, software functionalities, and more. Contact us to jumpstart better revenue management opportunities for your organization.