As a rule of thumb, even the slightest changes in prices cause demand to fluctuate. Therefore, whenever and pricing decisions are made, you have to consider the degree of elasticity that the pricing strategy might entail. This translates to evaluating its effect on the rest of the portfolio, how competitors and customers might respond, and how it will impact the top and bottom lines.
A dynamic price-setting solution is paramount across all products and channels to set optimal pricing throughout the entire product life cycle. Accurate product and market data and a sophisticated methodology is pre-requisite to help businesses determine the optimal initial price, make timely price adjustments, and develop an effective markdown strategy.
At Quantzig, we believe that one size does not fit all when it comes to pricing decisions. Each business’s pricing strategy requirements vary based on target customers, features and utility of products and services, and tactics of key market competitors.
Discount Sensitivity Analysis
With the intensifying market competition, most players opt for discounts to promote sales and profitability. But most often, businesses are unable to reap expected results from such strategies. Diligent use of data to understand how discounts impact consumer behavior is the key to success.
Quantzig can help you identify the most sensitive components to discounts and price fluctuations using advanced statistical models. We also provide data-backed insights on consumer sensitivity to different discount strategies and competitor discount pricing practices to enable your business to gain a leading edge in the market.
Cross Elasticity Modelling
It’s not just your pricing strategy that can impact your value chain; pricing strategies of competitor brands and other related products in the market can influence consumer behavior towards a business. Further, changes made in the pricing of one product category could also affect other product categories in the portfolio. Agility in monitoring competitor strategies and dynamic changes in the market will help businesses stay ahead of the curve.
Our price optimization experts can help you drive significant outcomes by automating price setting and embedding systemized capabilities into your day-to-day pricing processes.
Draw insights on price recommendations, establish the optimum price for your offering, maximize profits, and achieve incremental revenue gains with the help of Quantzig’s advanced price elasticity analysis.
Quantzig’s advanced price elasticity analysis helps in determining product prices based on market situations and real-time changes in competitors’ pricing strategies. Our solutions can also help you base your price structures on market saturation, inventory availability, and customer demand. This can further lead to an increase in demand and improved customer satisfaction and loyalty.
Request a free proposal to leverage Quantzig’s advanced pricing analytics solutions to develop and implement a robust pricing strategy to bolster the value and impact of product pricing, accurately measure customer response to price changes, and implement agile strategies to minimize adverse impacts.
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