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Lifecycle Pricing in Retail

Pricing strategy presents both the biggest opportunity and biggest threat to retailers. In today’s environment of price transparency where shoppers can use handheld devices to find a better price online or even next door, developing the optimal pricing strategy is no longer an option but a necessity to compete.

Pricing strategy cannot be considered optimal if decisions are based entirely on category or store impact. Predicting the effect of the price of an item in the ‘basket’ and measuring the effects of your competition are equally important in today’s new economy. Not only should you consistently benchmark yourself against competition, but also establish the true effect of your competitors on your entire business.

We develop a detailed understanding of the shopper. Which product offers are relevant? How sensitive is the shopper to price? How loyal are they to the brand? We also determine how competitor pricing impacts the performance of regular, promotional, and markdown pricing and deliver the capability to predict how price changes across multiple products affects the ‘total basket’ for each shopper.

Our thought leadership and end to end expertise in Lifecycle Pricing Optimization helps retailers institutionalize and benefit from an optimized pricing structure. Our closed loop project delivery approach that emphasizes people, process and analytics is the key that leads to financially measurable results.

"Prognos demonstrated out-of-the box analytical thinking when working with us on the Pricing Optimization implementation. They helped me connect the dots on how high end analytics should be deployed to generate business benefit through pricing. I strongly recommend their work in the pricing optimization space."

- Director of Pricing, Large Department Store Retailer

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