Pricing of retail products is a complex subjects that involves multiple concepts and is impacted by different factors. Price elasticity of demand is a major factor on deciding on discount of products, discounting an inelastic product is a net loss of money.
Insight 360 created for you a ready made product Maestro Insights- Price Optimizer to consume your transactions, calculate the price elasticity for every item and generate relevant business insights from it. In addition to the calculation of the elasticity maestro the Price Optimizer will group the items in 3 categories allowing business team to decide on which item to discount where we can expect a positive change in the demand and which are not.
Sales Movers: these are highly elastic articles where reduction in price results in increase in quantity of more than 50% and increase of sales
(set elasticity less than -3.5)
Quantity Holders: these are highly inelastic articles where reduction in price results in marginal change in quantity.
(set elasticity between -0.25 and +0.25)
Sales Killers: these are highly elastic articles where reduction in price results in decrease in quantity of more than 30% and decrease of sales
(set elasticity more than +3.5)
