Price & Markdown Optimization
Retalon’s Dynamic Price Management system is built on a powerful Predictive Analytics engine. This system will automatically monitor your entire retail process, uncover hidden opportunities, and recommend the most advantageous pricing strategies. The system significantly reduces inventory costs and boosts gross margins.
Price management, and optimization is at the core of Retalon’s common analytic platform. See how it fits into our overall comprehensive retail solutions map.
Price is one of the main factors influencing the quantities of products consumers buy. The amount of products sold at a given price directly translates into the total revenue and the profit.
The price strategies for different products can be based on cost, competitive prices, inventory targets, brand, traffic, etc. In each case the optimal price can be calculated.
The optimal price is the price that:
- Is based on the price strategy selected
- Satisfies all policies and restrictions
- Provides maximum GM (i.e. the best balance between higher sales with lower GM and low sales with a high gross margin)
- Dynamic (i.e. accounts for the past price changes and planned promotions)
- Calculated based on Promo campaign influences (such as type of media used in promotion – if applicable)
Systematic and informed decisions regarding pricing, markdowns and promotions must be made to successfully run retail business.
Download the paper Price Management Through Product Life Cycle to learn more.