Price Optimization

Assignment: 

Mike Selvage and Dave Tobin are consultants working for a data analytics startup based in Austin TX. They are presently advising Fjord Motor’s B2B sales team in revamping their bidding strategy for fleet sales auctions for their popular model Coronet Elizabeth. In the past quarter, Fjord Motors has experimented with about 4,000 bid prices (using managerial intuition and heuristics) and Messrs. Selvage and Tobin have been given access to this data that has the bid price, auction outcome and the order quantity. The MSRP for Coronet Elizabeth during the quarter was $25,000 and the total cost per unit can be assumed to be $15,000.  

I calculated a single bid price, bid prices for different customers, and bid prices for different customers while taking order size into consideration.