Prices

The pricing management module is a high-tech solution for working with prices, in order to maximize profits, automate processes and reduce manual labour.

The pricing package offers users the following functionality:

Optimization - designed to form the optimal price for each SKU, taking into account price elasticity and competitor prices. The price is calculated not only to maximize profits, but also to reduce food waste.

Monitoring - designed for automatic scraping and monitoring of both regular and promotional prices from competitors for selected SKU lists on their websites.

Catalogues - designed for scraping and monitoring prices and promotions from selected catalogues on competitors' websites.

EAN codes - designed for automatic scraping and monitoring of both regular and promotional prices from competitors' websites using unique products EAN-codes.

Dynamics- designed to create reports on the dynamics of price changes, to visually present changes in your prices (sorted by product groups or lists, price segments, competitors and time periods) relative to competitors' prices and distribution of your prices relative to market prices.

Policy - designed to create and automatically ensure your pricing policies for every change in competitor prices.

Open

"Optimization" module is designed to automatically calculate the optimal price for each SKU to maximize profit or sales.

Using the optimization module allows you to:

• It is convenient to choose SKUs for which it is necessary to calculate the optimal price;

• Get information on current prices, competitors prices and price recommendations;

• View the forecast of changes in sales in volume, value and margin using the recommended price;

• Calculate the forecast for the selected SKUs based on the recommended price and see the price elasticity chart;

• To approve the recommended price for SKUs, for the chain or selected stores;

• View how price change for the one product impacts sales of other products in the group (cross elasticity);

• View price change history for the selected position.

The module is used to calculate the theoretically optimal prices for the selected positions. This allows the user to understand at what prices the sales forecast will be maximum in sales, money and margin, and also understand how changes in the price of some products will affect the sales of others.

For example, if you lower the price of one product in a group, this will most likely lead to an increase in its sales, but it can greatly reduce sales of other goods in this group and lead to a loss in money and a margin on total sales in the group.

The price optimization module allows you to avoid such errors and consider prices, taking into account the many factors that affect them. In more detail, how the system calculates prices is described in the section "How is the optimal price considered?"

The system calculates the optimal price for each selected position based on its price elasticity of demand. For more details about price elasticity go to the Price elasticity section.

The optimization module is designed as a first step towards automatic pricing based on price and cross elasticity.

When using price optimization, the user should follow the following rules:

• When using the module, user should apple prices change in the range of 10% relative to the price of competitors;

• It is advisable to take 50 or 100 top positions for the sample and start optimization both for increasing and reducing;

• When choosing a price increase, user should choose the optimization by sales value (the system selects preferred optimization by default);

• When choosing a price reduction, user should choose optimization by margin (the system selects preferred optimization by default);

• After completing the calculations, before accepting prices, the user must check the prices received - in case of a reduce, the difference from the prices of competitors should be no more than 5% for direct competitors (15% relative to hypermarkets and online stores);

• When reducing price, only take checked positions (for which there is an understanding of changes in demand when prices change), since lower prices can eat margins and sales of other products from the group.

After accepting suggested prices for the selected positions, it is advisable for some time to analyze how sales will change for the further more efficient use of the price optimization module.

Using the price optimization module, you can not only see the forecasted changes in demand when the price of a particular product changes, but also the effect of this change on other products in the group.

This allows users to understand how changes in the price of one product will entail changes in demand for other products in the group, which allows us to more accurately assess the overall changes in sales after changing the price of one product.

Responsiveness of the quantity demanded for a good to a change in the price of another good is called cross elasticity of demand. It is measured as the percentage change in quantity demanded for the first good that occurs in response to a percentage change in price of the second good. The system automatically calculates dependencies between the demand for some products and the change in prices for others and expresses them in a quantitative assessment of changes in sales.

Factors that affect cross elasticity are the natural properties of goods, their ability to replace each other in consumption. The cross elasticity of demand may be asymmetric: when the price of the first product decreases and demand for another product increases, but if the price of the second product rises and demand for the first product does not change.

The Optimization page is represented by two elements:

• The settings and filters area is used to select optimization parameters, as well as to select the items for which the calculation will be performed.

Open

• The results display area is intended for displaying results and is described in detail in the section "Results area"

Open

The settings and filters area is used for optimization tuning and items filtering. It consists of two areas and a recalculation button.