Pricing Strategy & Optimization Consulting
Promotional Pricing Model Consulting
Promotional Pricing Model Consulting
The seasonal retail market is almost over and your store has left over seasonal inventory. You need to move this inventory. Offering promotional pricing will move product quickly, this is called temporary price reductions (TPRs). The question is how much price reduction?
Dunn Solutions' Promotional Pricing Model Consulting uses machine learning to provide the right promotional price. Would you offer a promotional price of 50% off if you knew that a 35% discount would be as effective? Of course not, that would be leaving money on the table.Dunn Solutions' Promotional Pricing Model Consulting provides the promotional price to move this inventory and maximizing profit.
Knowing the right price reduction that will maximize profit and ensure inventory is moved is challenging. To get this answer you need to know what a consumer is willing to pay and what price point ensures that all the inventory is moved. This is easier said than done! Dunn Solutions' Promotional Pricing Model Consulting uses machine learning to mine your historical data to understand the demand for the product at the current time. You provide data and our machine learning algorithm runs through thousands of scenarios to find the best predictive model and recommends TPRs to maximize profit.
Use Dunn Solutions' Promotional Pricing Model Consulting and start increasing sales without leaving any money on the table.
Product Pricing Model Consulting Third Level Subsection Structure
Product Pricing Model Consulting Approach
Use Cases Supported by Dunn Solutions' Promotional Pricing Model Consulting
Promotional pricing or temporary price reductions (TPRs) are used for a variety of reasons. These include:
- Increasing short term cash flow
- Competing with your competitors during sales events (i.e. Black Friday).
- Increasing traffic (online or in-store)
- Cross-selling opportunities
What Questions Does Promotional Pricing Model Consulting Answer?
Dunn Solutions' Promotional Pricing Model Consulting answers:
- How much do unit sales increase for every 1% in discount?
- What is the short term profit-maximizing price point?
- What are expected sales for a given price reduction?
Maximizing Profit with Dunn Solutions' Promotional Pricing Model Consulting
Temporary price reductions (TPRs) are a great marketing tool to generate incremental sales; however, is the additional volume gained enough to make up for the reduced profit per unit? The answer is that you will remain profitable with the right price reduction. Dunn Solutions' Promotional Pricing Model Consulting has a high degree of accuracy in estimating the "optimal promotional price" – that is, the maximum discount you need to give to meet your objective and still remain profitable.
Combine Promotional Pricing Model Consulting with Other Dunn Solutions Predictive Services for More Power!
The output of Dunn Solutions' Promotional Pricing Model Consulting can be combined with other predictive models to optimize a promotion pricing strategy to ensure overall increase in revenue and profitability.
Combining Promotional Pricing Model Consulting with Product Recommendation Consulting will reveal the effects of discounting on related products.
For example, product recommendation reveals that two products are often purchased together. If you want to increase sales on either product, you do not need to discount both products because of their high affinity to be purchased together. Don't leave money on the table!
The output from Promotional Pricing Model Consulting includes a list of products and their promotional price elasticities, and a list of products and their promotional price elasticity by geography. Optionally, a list of products and their profit maximizing promotional prices.
How Many Times Should Promotional Pricing be Run?
The service subscription is annual and includes one score run per month (12 runs, 1 per month). The subscription includes up to 100 products.
More frequent runs and larger product set can be requested for additional fees.
Promotional Pricing Model Consulting, How Does It Work?
Dunn Solutions' Promotional Pricing Model Consulting is a subscription service that uses a web-based interface to get your data, mine your data, create a promotional pricing model and score your products.
You provide sales and product data in a text file (we provide the format structure for you) and the service does the rest. If there are issues with your data, you will be notified and given instructions on what to do to resolve the issues.
Once your data is scored, a list of products with average pricing and pricing elasticity value is provided for download. We also provide a list of products and their profit maximizing promotional prices as an option.
Do Your Promotional Pricing Models Require More Refinement?
Do your promotional pricing models require a more custom approach? Dunn Solutions' advanced analytics experts can create more advanced and sophisticated promotional pricing models to meet those needs. Simply contact us and we can discuss your special promotional pricing models.