DemandTec

Everyday Price Optimization

Optimize Prices to Achieve Your Sales, Volume, Profit, and Price Image Goals

Many leading retailers depend on Everyday Price Optimization from DemandTec to help them answer key pricing strategy questions such as:

• “How can we improve our price image while maintaining our current level of profitability?”
• “How can we respond to rapidly increasing costs without passing them directly to our shoppers?”
• “How can we price our private label items to maintain category performance as customers seek lower total baskets?”
• “How can we better compete on price vs. the competition?”

Everyday Price Optimization, a software service in the DemandTec Lifecycle Price Optimization™ solution, enables retailers to deliver optimized prices to achieve their sales, volume, profit, and price image objectives for regular, everyday items.

Everyday Price Optimization

• Leverage industry-leading optimization science to set the right prices for the right products at the right time
• Simplify the pricing process with a library of plain-English pricing rules
• Choose the best set of prices using scenario-based “what-if” analysis

Leverage Industry-leading Optimization Science to Set the Right Prices for the Right Products at the Right Time

Everyday Price Optimization leverages the most advanced Consumer Demand Management science in the industry, with SKU-level modeling and optimization that captures the elasticity of each item, in addition to cannibalization, halo effects, crosscategory pull through effects, trends, seasonality, and a host of other causals to deliver an unparalleled level of accuracy. DemandTec science enables retailers to develop pricing that conforms to their pricing rules while maximizing their primary and secondary goals, such as driving higher sales, increasing volume, and improving profitability.

Simplify the Pricing Process with a Library of Plain-English Pricing Rules

Using Everyday Price Optimization, retailers are able to define and enforce their pricing policies by creating pricing scenarios with pricing rules selected from a comprehensive library. Rules in this library, such as last digit rules, competitive price index rules, and cross-zone rules are easily configured by the merchant using natural language editing. Retailers can prioritize these rules in their pricing scenarios in order of importance. In the event that conflicting rules make it impossible to calculate an optimized price scenario that adheres to all of the rules a retailer defines, DemandTec’s proprietary rules relaxation capability gives retailers the option to review optimized price scenarios that best conform to a retailer’s rules and goals.

Choose the Best Set of Prices with Scenario-based “What if” Analysis

With Everyday Price Optimization, retailers can quickly create and evaluate multiple pricing scenarios to fine tune their pricing strategy before prices hit the shelves. Retailers can create new “what-if” scenarios in order to change their goals (maximize profit, sales, or unit volume) or add, remove, modify, or reprioritize their pricing rules. Retailers can then view a side-by-side comparison of different pricing scenarios and evaluate the predicted results at the SKU, line, or category level.

Everyday Price Optimization: Part of a Comprehensive Solution for Managing Pricing across the Product Lifecycle

Everyday Price Optimization is a software service in DemandTec Lifecycle Price Optimization, a solution that includes related software services that enable retailers to price items at any stage in their lifecycle – including new items, regular retails, promoted items, and clearance items. All software services reside on the DemandTec Platform™, and are available through a single personalized portal.

Get Started Today

Are you ready to optimize prices to achieve your sales, volume, profit, and price image goals? Take the next step. For more information, call 1-888-676-3626 or request information online.