Price Optimization

Systematically Execute Your Price Image 

 

Price Management, Optimization & Analysis

Today's retailers face a number of challenges -- hyper-competition, heightened shopper price sensitivity and rising costs -- which are putting pressure on margins and sales growth. Rapidly shifting shopper and competitor behavior adds to these challenges and drives increased price change frequency requirements. Retailers who leverage the speed, science and strategy of demand-driven pricing now have a clear advantage over their competition.

Revionics® Price Optimization has the most installations in the retail industry, helping retailers price with confidence by leveraging demand-based science and predictive analytics to:

  • Shape & predict customer behavior
  • Surgically execute competitive positioning
  • Automate manual pricing processes & rules
  • Improve customer loyalty
  • Forecast & measure price change impact

The Optimal Price

Blending data, business rules, pricing science and retailer strategy is the fundamental premise behind Revionics proprietary optimization and price management process. These optimization components work in concert to enable retailers to predict and respond to changing shopper and competitor behavior at the speed, scale and frequency required to remain competitive today.

  • Internal & External Data

    Integrates POS, TLOG, master, weather, all forms of online and in-store competitive data including Nielsen Pricing Insights, market data, and more.

  • Business Rules & Operational Constraints

    Incorporates margin targets, competitive positions, private label relationships, ending numbers, price change limits, minimum pricing requirements and more

  • Pricing Science

    Includes shopper demand elasticity, seasonality, holidays, trends, cannibalization and affinity

  • Pricing Strategies & Tactics

    Configure any intersection of store/product hierarchy and isolate image drivers (KVI’s) leveraging predefined or customized strategies for granular execution of business and financial strategies and objectives.

Key Solution Features

Sophisticated-yet-usable science achieves operational efficiencies with data automation and price management while providing tools for planning, simulation, analysis and measurement which enable users to be more strategic and less tactical in pricing decisions. The user-friendly interface makes it the perfect tool for pricing strategists and merchants - not just analysts or scientists!

Revionics best-in-class features include:

  • Real-time 'what-if' simulation
  • Forecasting & measurement
  • Weekly & on-demand modeling
  • Recommendation prioritization
  • Actionable reporting & insight
  • Pre-configured pricing strategies
  • Customizable pricing strategies
  • Competitive & market data integration
  • Automated price management
    • Target margin
    • Competitive indexing
    • Price Families
    • Key Value Items
    • Good-Better-Best
    • Price Per Unit
    • MAP, price & cost lock enforcement
    • Price change limits

Easy to use screens and reports enable users to simulate alternatives, prioritize decisions and take action at speed and scale. Taking the emotion out of pricing decisions while providing transparency into the “Why?” behind any recommendation builds user trust and confidence - leading to very high levels of user adoption.

Price Optimization Benefits

Retailers who use Revionics® Price Optimization see a Return on Investment within 9 Months, 2-5% Gross Margin Gains and 1-4% Profit Improvement.


  • Balances need to provide shoppers & shareholders with value
  • Turns insights into actions at speed & scale
  • Aligns pricing strategies & tactics with category & financial objectives
  • Executes competitive positions while maximizing profit opportunities
  • Automates price management by enforcing rules & constraints
  • Localizes pricing to exploit local shopper & competitor behavior
  • Integrates most current data & trends into pricing decisions
  • Measures effectiveness & automatically adapts to changing conditions

Explore More on Price Optimization

Review this selection of thought provoking insights, customer experiences & articles to learn more.


White Papers

Next Generation Price Optimization: Latest solutions blend the art and science of pricing

The Pricing Evolution: The Perfect Storm Compelling Retailers to Shift from Rules-Based to Optimized Pricing

Strategic Competitive Positioning: Balancing the Shopper & Shareholder Value Equation

Optimizing Prices in an Omni-Channel, Price-Transparent World

Price Elasticity & its Applications: Understanding Price Sensitivity & its Role in Pricing


Webinars

Compete More Profitably with Strategic Pricing

Price Optimisation: New tools facilitate pricing in an omni-channel world

Tough Love: An In Depth Look at Retail Pricing Practices


Data Sheets

Revionics® Price Optimization: Base Price Strategy, Simulation & Measurement


Case Studies

Big Y Foods Enhances Price Image, Increases Margins and Obtains a Strong ROI with Revionics® Price Optimization

Roundy’s Achieves “Significant” ROI and Competitiveness with Revionics® Price Optimization Solution

City Farmers Drives Stronger Value for Its Customers While Increasing Gross Profits with Revionics® Life Cycle Price Optimization Solutions


Articles

The Price is Right (Right?)

Supermarket Chain Faces Tough Decisions After Rapid Expansion

Managing the Pricing Cycle

Strategic Alliance between Revionics & Nielsen Targets Optimum Pricing for Customers


For more information please visit our Retailer Resource Library for a complete selection of thought leadership papers, data sheets and on-demand webinars. Additional case studies can be found on our Customer Case Study page.


Life Cycle Pricing Solutions

Promotion Optimization | Price Optimization| Markdown Optimization