Optimize retail pricing strategy to meet sales, volume and profit goals
The Southern Co-operative increases sales and competitiveness with a data-driven pricing strategy
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IBM Price Optimization can improve retail pricing strategy to optimize base prices for everyday items and achieve sales, volume, profit and price image objectives. Using science to determine pricing that conforms to your pricing rules, IBM Price Optimization supports your primary and secondary goals, including higher sales, increased volume and improved profitability.
IBM Price Optimization can:
- Set the right prices to achieve your pricing goals using industry-leading optimization science.
- Simplify the pricing process using a library of natural-language pricing rules.
- Compare different pricing strategies quickly using what-if analysis.
Set the right prices to achieve your pricing goals
- Identify the optimal prices to use for different products at different times.
- Use advanced consumer demand management sciences to determine optimal pricing.
- Employ SKU-level modeling and optimization to capture the elasticity of each item, in addition to cannibalization, halo effects, cross-category pull-through effects, trends, seasonality and other factors.
Simplify the pricing process
- Define and enforce your pricing policies by creating pricing scenarios with pricing rules you select from an extensive library.
- Configure library rules, such as last-digit rules, competitive price index rules and cross-zone rules, using natural language editing.
- Prioritize rules in your pricing scenarios in order of importance.
- See when conflicting rules make it impossible to calculate an optimized price scenario and use a rules relaxation option to review price scenarios that most closely conform to pricing rules and goals.
Compare different pricing strategies quickly
- Quickly create and evaluate multiple pricing scenarios to fine tune your pricing strategy before prices go into effect.
- Use “what-if” scenarios to change goals, including profit, sales or unit volume or to add, remove, modify or reprioritize pricing rules.
- View a side-by-side comparison of different pricing scenarios and evaluate the predicted results at various levels, such as at the SKU, line or category level.
- Achieve greater visibility into and control over marketing budgets and expenses to help reduce costs.
View an easy-to-read dashboard with pricing data on demand.
Gain pricing intelligence to dynamically respond to competitive price changes.
See detailed pricing data that can be filtered and exported for deeper insights.