Automatically suggest price changes that may be necessary due to changes in cost, competitive pricing, or for new products
Retalon automatically suggests the optimal price changes for all products in the family. (i.e related products of different sizes, brands, labels, etc.)
The price changes are based on business rules and comply with the polices, such as degree of change, target margin, size shield, brand shield, competitive prices and others.
Manage prices through the entire product life cycle, including product introduction, regular price, promotion, markdowns and sell-off (exit price)
Accounts for Retalon's accurate demand forecast, seasonality, price elasticity of demand, lost sales, events and many other influencing variables
All Retalon solutions are fully integrated in a common predictive analytics platform.
You can’t simply change the price of a product. This action may result in declining sales of cannibalised products or incremental sales of affinity products. It may affect the demand of the same product sold in different sizes, or similar product of the other brands. A group of products that one or another way affected by the price change is called Price Family. They all should be taken into account when a price change is considered for one or more family members. In addition there is a large number of policies and constraints that should be respected. Finally competitive prices additionally limit the ability to change the prices. Trying to find an optimal combination of price changes, given all these conditions is a serious analytic task.
Retalon Predictive Analytic Engine automatically suggests the most profitable combination of prices for the Price Families, based on Price Elasticity of Demand and within all the constraints, policies, and business rules. In situations where users specify mutually exclusive or contradictory conditions, the system will generate an exception and clearly specify what rules or policies should be re-considered.
Analytic Driven Pricing allows resolving price change collisions resulting from numerous restrictions, business rules, and policies, such as Maximum Degree of Change, price ladders, GM Targets, prices for substitute products, policies on brand label versus private label, etc. Trying to achieve this by a number of tactical moves is a never-ending battle.
Three things to consider when managing & optimizing prices:
1. Equipped with mobile devices, consumers easily compare prices. Developing a true omni-channel price across all the channels and competitive behavior strategy is the key to maintaining control in your hands.
2. Matching lowest price is a dangerous strategy. You don’t necessary have to sell more product to make more money. There is an optimal price point when the quantity of product sold at this price will maximize your gross margin.
3. Buying a product based on Vendor Deal is not necessary a deal. You may overstock yourself, freeze money in product that will move slow and be forced to take a sensitive markdown. The optimal price point can only be calculated together with optimal purchase quantity, accounting for demand forecast, available inventory and other affecting factors.