Pricing, Pricing, Pricing

October 4, 2021

Pricing is the most important thing to get right while also being the most difficult thing to get right.

We're often asked how we price our dividend forecast data. We explain our methodolgy here, in decreasing order of impact on the budget:

1) Volume of securities. We offer full flexibility over how many securities our clients consume - this can be setup by ISIN list, by market, or consistent with the securities of certain indices. So our first consideration is how many securities? 150? 1500? 15000? More?

2) Second, and related to 1) we need to know the complexity of securities. Is this straightforward US and European names, or is it more obscure EM, Brazilian, Russian etc securities? The latter is harder to forecast (and takes more time) so will be priced higher than the simple everyday names.

3) Usage. Will the data be used by one small team in one location or multiple teams/desks across multiple locations? We don't price by number of users, but we do like to know approx. how widely our data will be used internally. This is partly as a guide to how much value will be extracted from it, and partly to understand...

4) Will you be a high / medium / or low-touch client? We have systematic fund clients who plug our data in and we never hear from them again. Some other clients ping our analysts with questions on a monthly or weekly (or even daily) basis. Our analyst time is valuable so we aim to factor this in.

5) Redistribution or redisplay. A requirement for only ~5% of our client base - we discuss on a case by case basis according to number of downstream users/viewers plus their use case.

With a clear understanding of the above we're able to provide indicative pricing at any stage of our consulting process.

When we launched the Woodseer product in 2017 we knew we were launching a new alternative data / alt-data product - and we kept an open mind about pricing our forecast data.

So the above developed organically as a way for us to meet our clients in the middle.

We hope the above helps and if you've questions requiring more detail don't hesitate to get in touch.


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