Price Optimization: Maximize Profit Growth
Client
Multi-store retailer based out of Iowa
Business Problem
The client wanted to maximize profits by crafting prices that would meet customers’ readiness to pay
Objective
Optimize retail prices for profit maximization
Abzooba’s Solution:
- Price recommendation engine uses the concept of predictive analytics and product price elasticity for profit maximization
- Products are segmented with respect to demand elasticity, price, movement speed, geography, store attributes, competition and applicable promotions
- Store-specific reports are being generated using PowerBI
- The recommended price with major contributing factors for each SKU is highlighted in the dashboard
- The store managers also have an option to change the recommended price to view the changes in the associated contributing factors
Business Benefits:
Y-o-Y 1.8% increase in profit on an average