Everything must go! At the end of every season, many fashion retailers offer rebates of up to 50% or more. Traditionally, these markdowns are based on the learnings gathered from previous years. However, this method often miscalculates what customers are willing to pay, resulting in untapped profit potential. In fact, according to a study by Coresight, retailers in the non-food sector squandered roughly 300 billion dollars in turnover in 2019 alone.
The best way for retailers to maximise their benefits on Black Friday is to optimize their pricing. Here, you’ll find practical tips about price setting and pricing strategy, including high-impact dynamic pricing solutions based on machine learning technology. Share on twitter Twitter Share on linkedin LinkedIn How customers shop on Black Friday Black Friday and Cyber Monday hail from the USA, but they have since made their way to Germany, offering shoppers
Every retail store assortment is made up of a vast selection of products. Some are considered “hit” products and others are naturally less popular. Many retailers neglect the importance of niche items – also called long tail products – as most revenues and profits are generated with their high-sellers. This is also true for pricing departments which leaves a considerable potential for profit improvements left untouched. Additionally, dealing with long
As technology has advanced and got innovated with time, numerous companies have hopped on the AI bandwagon to automate internal workflows and support business intelligence. According to a market study conducted by McKinsey, the potential efficiency gains from AI amount to over 3 trillion dollars per year, of which one third are allocated to the Retail industry alone. With the ever-increasing amounts of data available, the innovative tools help extract valuable information, as well as allowing organizations
In its attempt to restart the economy and help it get back to its pre-Corona state, Germany proposes a VAT decrease. The rates were set to go from 19% to 16% and a reduction in the reduced VAT rate from 7% to 5% with effect from 1 July 2020. The rates apply to supplies of goods or services carried out from 1 July until 31 December. This policy is hoped
The practice of dynamic pricing is not a new concept. Some see the origin in the airline Industry where its use started in the 1980s. But even beforehand it was common practice in small grocery stores to discount perishable products like bread over time. At its core, dynamic pricing simply means that a company sells a product at different prices. Share on twitter Twitter Share on linkedin LinkedIn Drivers of
Setting the right price for your product or service is hard. In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity. Share on twitter Twitter Share on linkedin LinkedIn Understanding your product’s price elasticity of demand is
When it comes to navigating through pricing, one is faced with two methods: Rule based pricing or machine learning based pricing. Rule-based pricing or rule engines are the traditional way of pricing in retail and online retail. Most online retailers change prices using this methodology. In this case prices are changed according to static formulas. This type of pricing can also be dynamic. For example, a retailer can set the