Initial, Regular, and Clearance Pricing
From beginning to end of life, price has an enormous and direct impact on every retailer's customer and bottom line.
How should you price an item in context of other items? What is the impact of changing a price? to the item? to other items? When should you start marking down an item? By how much?
Understanding consumer response to price and price changes can bring great value to making pricing decisions. With the right talent and tools, these responses can be modeled at granular levels using customer sales information at very specific levels. Gut-feel decisions miss out on a lot of this information, but also contain much business knowledge. To get value and adoption out of optimization solutions, that knowledge must be skillfully coaxed out, translated and aligned to informed business strategies.
Retailers have been building and leveraging tools and developing stronger practices in this area for a number of years now. And continue to see great return on revenue, margins and customer growth.
How can WE help?
HOW CAN YOU BETTER USE DATA to inform pricing DECISIONS?
In our opportunity assessment, we meet with retailers to understand value that they can achieve by leveraging analytics in pricing.
- Understand business challenges and objectives
- Assess current processes and results
- Evaluate systems and decision frameworks
- Review pricing constraints and cadences
- Identify opportunities for improvement, in line with short and long term strategies
With pricing, multiple factors can be responsible for outcomes. Without alignment across areas such as assortment, purchasing, promotions, inventory - pricing decisions could be covering problems in another area or not targeting desired results. An external perspective can help identify alignment issues and evaluate business case for advanced optimization tools and deep-dive analytics projects.
WE CRUNCH DATA TO inform your pricing decisions and strategies
We perform deep dive analysis on historical consumer demand to help retailers understand how consumers have responded to price changes in the past and how they might in the future.
- Understand current business pricing strategies
- Analyze large and complex data sets
- Data scrubbing, demand modeling and other advanced analytic methods
- Price elasticities, cross-product effects
- Strategic insights and recommendations
We also provide outside resources to audit current pricing analytics practices and expand your expertise.
SIMPLIFYING COMPLEX SOFTWARE. AND MAKING IT WORK BETTER. FOR YOU.
Whether you are currently using or implementing pricing or clearance optimization solutions, Cognira can help you get quality results that meet your objectives.
- Review user processes and business objectives
- Examine systems settings
- Align system to business strategies
- Refresh and tune system parameters, such as price elasticities, seasonalities, lifecycle curves, etc.
- Customize enhancements
- Educate user community
Ensuring optimization solutions are appropriately tuned to meet your informed business strategies is essential to solution adoption and long term success.