Business Solutions

Managing the profitability of product and service lines (segments) requires command of knowledge of pricing and cost, and an appreciation of the uncertainty of the two.  This command requires data and analysis.

Pricing and costs are driven by market forces, thus largely beyond anyone’s control, as are uncertain events themselves; yet quantification of uncertainty is possible, allowing for the micro-adjustments in pricing that can make the difference between segment profitability (contribution) and loss.

To achieve this end, Baker, Jake & Powell can combine your customer data with external data and apply operations research methods with project management into a process of Engineered Business Performance™  Statistical methods are then applied to the array of business options (an efficient investment frontier) to select the optimal mix of risk and return, an Engineered Business Decision™

Don’t confuse risk-based pricing with risk management.  Insurance industry risk management is a property and casualty (P&C) concept and is an application of risk-based pricing to exogenous events.

Baker, Jake & Powell is not in the P&C risk management business.  That is an insurance industry term associated with unusual and infrequent events.  Rather, BJP is in the business of managing business segment profitability through empirical evidence of endogenous customer behaviors to develop risk-based pricing.