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Blog

By: Christie Frazier-Coleman, VP Consulting, Revionics, Inc.

Frank Badillo a Senior Economist for Retail Forward in his November 6, 2009 Washington Post article stated:

“Don't expect shoppers to abandon their hard-earned lessons in frugality even if the economy starts picking up.  Households remain focused on shopping for needs, and this kind of cautious shopping behavior will restrain sales improvements.”

Replenishment- The next frontier for Revionics

Tuesday, 29 December 2009 00:00

By: Todd P. Michaud, President & CEO, Revionics, Inc.

Over the next couple of weeks, Revionics will be announcing RAPS Replenishment, a fully comprehensive inventory management, forecasting and order optimization system.   We intend on demonstrating this system to prospective customers at the annual NRF show in New York on January 11th and 12th.   General Availability (GA) for customers will be April 1, 2010.  The completion of this module will be a significant accomplishment for our development team.

By: Christie Frazier-Coleman, VP Consulting, Revionics, Inc.

According to Antony Karabus, President and CEO of Karabus Management these five strategies for retailers are important in order to emerge as a strong retailer.

1. Optimize cash and cost management

2. Understand what is relevant and motivates your customer

3. Use science to improve gross margins and inventory productivity

4. Invest in technology correctly and on the right projects

5. Get your supply chain right

Revionics has pioneered the delivery of price, promotion, and markdown optimization thru the Software-as-a-Service (SaaS) model. This delivery model is much more cost effective than either on-premise or on-demand delivery. Instead of purchasing a software license up front and then paying annual maintenance, SaaS is a subscription-based offering where retailers pay-as-you-go. Revionics assumes all the risk of owning and managing the hardware. All customers are on the same version of the software, so up it is much easier to manage for Revionics---and more cost effective for the retailer. Most importantly, the SaaS model aligns the interests of Revionics with the retailer because is the solution does not deliver value, the retailer is free to cancel their subscription.

Leaving Excel for a More Modern Era

Thursday, 19 November 2009 00:00

By: Jeff Smith, EVP and Founder, Revionics, Inc

Don’t be embarrassed…You may think that everyone else in the retail industry is using advanced pricing tools and that you are still in the era of the dinosaurs; the fact it: you are in the land of the dinosaurs, but so is the majority of retailers!

Many retailers that I talk to appear to be somewhat embarrassed, and reluctant to admit that they still do their everyday and promotional pricing in Excel. The truth of the matter is, there really hasn’t been a better tool until recently. Advanced price optimization tools have recently been introduced into the retail arena, before that, margin management and competitive positioning was about all that could be leveraged to determine the best price point.

By: Todd P. Michaud, President and CEO, Revionics, Inc

Looking back, when Revionics first developed the Promotional Planning module, we really did not know the exact capabilities we were going to be featuring. However, Revionics truly has cultivated a distinct Promotion Planning modeling module. In all reality, we were hoping to help customers take the guess work out of determining which items to promote and at which price to promote them at. Conversely, Revionics’ Promotion tool possesses more than that.

14 Tips to Implementing Successful Projects

Tuesday, 03 November 2009 00:00

By: Christie Frazier-Coleman, VP Consulting, Revionics, Inc

In my retail career, I have had the opportunity to implement many types of software.  Each and every selection and installation had the intent of assisting the business to improve processes, implement new strategies, and increase efficiencies.  Companies today are looking for tools to squeeze extra margins, reduce costs, and help make better decisions.  How do the great companies succeed in capturing the changes and efficiencies needed from those investments?

Quiz Yourself on Price Elasticity

Tuesday, 27 October 2009 00:00

True or false? Is it possible to lower prices and make more profit and revenue, even at a lower margin? For many, this seems counter-intuitive, but it is definitely true. We were recently working with a retailer on their detergents category where they had priced an Ajax product at $1.79. We found this product by sorting on price elasticity in the price review screen of RAPS Everyday Price Optimization. The price elasticity of Ajax was greater than 3.0, which represents very strong price sensitivity. Most items have a price elasticity between 0.8 and 1.4.  For those unfamiliar with the calculation, price elasticity is simply the percent change in units divided by the percent change in price. So a price elasticity of 3 simply means that if we drop the price by 10%, the units will increase by 30%. The table below compares profit and revenue between the current price of $1.79 and the $1.49 price suggested by Revionics:

Revionics University Continues to Develop

Friday, 23 October 2009 00:00

By: Jeff Smith, EVP and Founder, Revionics, Inc

For some time,  Revionics University has been producing highly attended web seminars pertinent to the retail industry. These seminars have covered a broad range of topics regarding general trends as well as best practices in relation to pricing. With Revionics University expanding, courses targeted directly towards Revionics customers are now available.

By: Jeff Smith, Founder and EVP, Revionics, Inc

Historically, the US has led the adoption of advanced pricing software.  With retail price optimization being invented in the United States – particularly in Sacramento as a matter of fact, it makes sense US retailers are more comfortable with the technology since they have been exposed to it much longer.  Many of their domestic retail peers have implemented some type of price optimization solution and are reaping the significant rewards of doing so. In other words, optimization is a known and proven commodity in the United States.