Price Management & Optimization

Source: Retalon

Retalon’s Price Management & Optimization solution enables retailers to maintain optimal prices throughout the product lifecycle, starting with initial prices and automatically adjusting product families to price changes. The system intelligently accounts for many factors such as competitive data, product cannibalization, promotions & events as well as any policies, business rules, or constraints set by the user.


You can’t simply change the price of a product. This action may result in declining sales of cannibalised products or incremental sales of affinity products. It may affect the demand of the same product sold in different sizes, or similar product of the other brands. A group of products that one or another way affected by the price change is called Price Family. They all should be taken into account when a price change is considered for one or more family members. In addition there is a large number of policies and constraints that should be respected. Finally competitive prices additionally limit the ability to change the prices. Trying to find an optimal combination of price changes, given all these conditions is a serious analytic task.


Retalon Predictive Analytic Engine automatically suggests the most profitable combination of prices for the Price Families, based on Price Elasticity of Demand and within all the constraints, policies, and business rules. In situations where users specify mutually exclusive or contradictory conditions, the system will generate an exception and clearly specify what rules or policies should be re-considered.

Analytic Driven Pricing allows resolving price change collisions resulting from numerous restrictions, business rules, and policies, such as Maximum Degree of Change, price ladders, GM Targets, prices for substitute products, policies on brand label versus private label, etc.

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