24th June 2024, V1.0

Core Modules

Enable pricing teams to keep list prices competitive easily, using AI to continually optimize list price books to maximise revenue or profit. Each of the features below is at a SKU x Location level. The following core modules make up the current out of the box capabilities.


List Pricing

Features: List pricing home view, including a view of key rollup KPIs (such as number of list price changes) and a per product and location table, containing detailed breakdowns on key product price data and the optimisation methods applied to generate the new list prices. Detailed per product view to see the detail of the demand vs price relationship for all elastic product with the optimizer method applied.


Price Sensitivity

Features: Calculate the impact of a price change on a given product, in terms of future demand (price elasticity). For example, if a product is calculated to be elastic, a price decrease is highly correlated to a forecasted increase in sales of the product. This is done at a product x location level. This is combined with the demand forecast and specific business guardrails (e.g. maximum acceptable list price change %) to provide the recommended list price. Price sensitivity and demand forecast are the primary methods for price change recommendation, with price exploration being the fallback method.


Demand Forecast

Features: Gets a prediction on future volume of product to be discounted. This prediction is based on the historical sales data of each product line. This is combined with the price sensitivity and specific business guardrails (e.g. maximum acceptable list price change %) to provide the recommended list price. Price sensitivity and demand forecast are the primary methods for price change recommendation, with price exploration being the fallback method.


Price Exploration

Features: Fallback list price change method applied if product data does not provide enough signal to determine relationship between price and demand. Instead of using price sensitivity and demand forecast, a basic percentage change price method is applied based on previous price changes and impact. 


Limitations

  • Limit of 30,000 product x location combinations load tested 

  • Limit of 100 concurrent users 

  • Supports existing products only (not initial list prices of new products) 

  • Does not include cross-elasticity out of the box, this is a customization