Dynamic Pricing and Optimization

Value: Improve price realizations by optimizing discounts

In the world of intense competition, blurring channels and changing consumer behavior, attaining the golden supply-demand balance is not always so simple in practice. Retailers are caught between the dual objectives of maximizing margins while clearing their merchandise.

As a result it has become imperative for them to get more precise with their markdown strategy, and control the depth and timing of markdown to react better to store-level inventory.

For leading retailers, dynamic pricing could lead the way in optimizing markdowns that are tailored to local buyer behavior. Dynamic pricing offers an opportunity to maximize margin, sell-through, and inventory value while addressing the common fallacies of “Too much Too soon” causing stock outs & margin loss or “Too little Too late” causing excess stock & impacting new product sales

Our experts can help:

  • Increase sales and gross margins with a proactive approach to optimizing price, promotion and markdown strategies.
  • Increase promotion profit­ability.
  • Set the right price for every product in every store.
  • Identify opportunities to adjust prices to boost the profitability of individual products
  • Encourage customers to shift from purchasing low-margin products to high-margin products.
  • Tailor promotions and prices to increase customer loyalty and profits.
  • Maximize in-stock positions by supporting replenishment systems with store-level demand forecasts.
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