A structured and scalable analytics framework to predict impact of price change on sales and estimate an optimal price point which will allow business to maximize sales or margin. This is typically done at the level where pricing decision is made like SKU/product level by price zones or store groups.
- Price elasticity Analysis to determine the responsiveness of the product purchase behavior based on increase / decrease in the price.
- Price Optimization: Price elasticity models and other business constraints are used to execute optimization model to determine the optimal price point at which a product has to be sold
- Price Gap Analysis provides insight on what price difference should be kept with respect to competitor / substitution to maximize sales
- Price Threshold analysis allows business to determine what should be the upper and lower threshold
- Cross price elasticity's analysis helps to understand impact of price change on competitor or substitution product sales