One of the greatest challenges retailers and manufacturers face today is pricing. For retailers, promotions, markdowns, “high-low”, and “everyday low” price strategies abound. For manufacturers, setting the MSRP is a complex and challenging task. Gaining greater control of your pricing strategy starts with how you price your products from Day 1.
What if you could determine optimal entry price points for new items that have no sales history?
InsightPricing from First Insight enables retailers and brands to determine optimal entry price points and forecast average unit retail (AUR) prices before products hit the market.
With InsightPricing, retailers and brands can now use real-time consumer insight to:
- Set the initial price which will maximize gross margin, based on a specified markdown cadence and initial sell-through target
- Set the MSRP and wholesale prices
- Determine private label pricing vs. branded pricing
- Forecast average unit retail (AUR) prices over an item’s lifecycle
- Identify your MarginMovers: Products found through InsightPricing that can bear a higher starting price point than originally planned.
Through online consumer engagements, input on hundreds of new products can be obtained in two or three days. Retailers and brands can quickly quantify market demand for an item at each price point. Analytic models identify the price point at which maximum gross margin will be achieved, given a specified markdown cadence and initial sell-through expectations.