Product Pricing is one of the most difficult decisions retailers and brands make on a daily basis. They ask themselves, “What are our customers willing to pay? Are we leaving money on the table, or is this a markdown waiting to happen?” Thankfully, retailers and brands do not need to guess anymore.
First Insight’s InsightSuite uses Predictive Analytics and the Voice of the Customer to forecast how a product should be priced—even without any sales history—for effective retail price optimization.
Pricing Winning Products
First Insight’s platform collects customer feedback on new product designs through social, email, and third-party panels to gather a statistically significant sample size. Our Platform then analyzes the responses—forecasting the outcomes for key product decisions within 24 to 48 hours. The results include clear product recommendations, aggregated customer comments, and vital price sensitivity data. The pricing data features an elasticity curve for each product and predicted Average Unit Retail (AUR) aligned with your business’ typical markdown cadence. Our platform allows you to easily identify winning products, and price them right from the outset.
The Power of Price Optimization
On a large scale, a small price change in either direction makes a significant impact on your retail business’ bottom line—showing the power of the price optimization.
With First Insight’s Price Optimization Software you can:
- Quickly quantify the demand for an item at each price point.
- Determine opportunities to modify buy depth based on pricing results.
- Set optimal initial prices for products to maximize sell-in and sell-through.
- Identify product attributes that do not raise the perceived value of your product.
By combining Predictive Analytics and the Voice of the Customer, you can optimize product pricing to increase your margins and bottom line.
On average, our retail and brand customers:
- Increase gross profit by 3-9%
- Increase new product success rates by 30-80%, improving forecasting accuracy
- Increase speed to market by reducing product launch time up to 30%
Pricing decisions are some of the most challenging for retailers and brands.
First Insight’s Retail Optimization Software allows you to truly understand what your customers are willing to pay for a given product and their demand at certain price points—allowing you to adjust accordingly. By using our platform, you can establish an effective, repeatable pricing strategy.