AI Price Optimization for retailers

Hit all of your business goals via portfolio pricing approach empowered with cutting-edge ML technologies. With Competera Price Optimization, your business gets:

  • Price recommendations based on demand elasticity
  • Price optimization to hit two targets at the same time
  • Fact-based pricing with the whole category in mind

Representative Vendor in 2022 Short and Long Life Cycle Market Guides

2023 Best Retail Insights awards

2023 Best Retail Insights by Vendors In Partnerships Awards

Retail Systems 2020 awards

Artificial Intelligence Project of the Year 2020

Analysts and experts recognize Competera as a major vendor for B2C AI pricing solutions

Competera helps to cover every pricing need

Price Optimization is one component of our product portfolio. Discover all pricing solutions designed for retailers with different pricing approaches.

Cost-plus

Cost-plus

Margin-centric

Ad hoc repricing

Human-driven decision

Market-driven

Market-driven

Competitor-centric pricing triggered by market changes

Regular repricing

Constant manual check

Data dependence

Rule-based

Rule-based

Based on rules and business constraints

Automated real-time repricing

Human-supervised

Market-share focused

Elasticity-based

Elasticity-based

Mix of rules & demand-based pricing

Goal-oriented repricing

Manager as a strategist

Portfolio coverage

Personalized

Personalized

Shopper-centric pricing

Individual offers based on LTV

Balance between customer demand and business goal

Cost-plus

Cost-plus

Margin-centric

Ad hoc repricing

Human-driven decision

Market-driven

Market-driven

Competitor-centric pricing triggered by market changes

Regular repricing

Constant manual check

Data dependence

Rule-based

Rule-based

Based on rules and business constraints

Automated real-time repricing

Human-supervised

Market-share focused

Elasticity-based

Elasticity-based

Mix of rules & demand-based pricing

Goal-oriented repricing

Manager as a strategist

Portfolio coverage

Personalized

Personalized

Shopper-centric pricing

Individual offers based on LTV

Balance between customer demand and business goal

Competera Pricing Platform

Competera Pricing Platform

A unified workplace with an easy-to-use interface

What is Price Optimization?

Price optimization is a powerful strategy used by retailers to set the most advantageous price for their products. This intricate process leverages advanced mathematical techniques and deep learning algorithms to analyze a myriad of pricing scenarios. It considers not just the competition but also factors like demand patterns, products cross-impact, and other pricing and non-pricing elements. The ultimate goal of price optimization is to ensure that every product, not just Key Value Items (KVIs), performs at its maximum, contributing to the business's strategic goals.

Competera's Price Optimization Software is designed to help businesses achieve this. As a retail pricing solution, it employs portfolio-level pricing and elasticity-based price setting to help businesses transition from mere competition-based pricing. This ensures sustainable growth in key metrics even as they expand to new markets.

How to Use Price Optimization to Generate More Revenue

To effectively leverage price optimization for revenue generation, there are three key areas that companies need to optimize:

  1. Starting prices: The initial price point for a product is crucial. It determines how the product is perceived in the market and influences demand. Competera's retail pricing software considers factors like demand elasticity and cross-elasticities between products to recommend optimal starting prices.
  2. Discounted prices: Strategic discounting can drive sales and increase revenue. However, it must be done carefully to avoid undermining the value perception of the product or service. By analyzing more than 20 pricing and non-pricing factors, Competera's price optimization solution helps businesses set discounts that maximize margins.
  3. Promotional prices: Promotions are an effective method to increase sales volumes and clear stock. However, determining the right promotional price requires a thorough understanding of demand patterns and product cross-impacts. This is where Competera's retail price optimization comes in. It provides accurate short-term forecasts, allowing businesses to set promotional prices that hit their targets.

Why Many Companies Fail at Price Optimisation

Price optimization is a complex process. It involves analyzing vast amounts of data, understanding customer behavior, and responding effectively to market changes. Without the right tools or expertise, many companies fail to fully leverage the benefits of this strategy.

A common pitfall is the reliance on competition-based pricing, which often proves insufficient for sustainable growth as businesses expand. Competera's retail pricing optimization software, however, helps businesses avoid this. By shifting to a portfolio pricing approach, it enables businesses to manage categories of products and hit their business goals. Moreover, it offers the capability to generate extra margin from the long-tail assortment and run different pricing strategies.

Features to Look for in Pricing Optimization Software

A robust pricing optimization tool, like Competera's Price Optimization Software, should offer the following features:

  1. Demand Elasticity Analysis: The software should be able to provide price recommendations based on demand elasticity. This ensures that pricing strategies respond effectively to market demand.
  2. Cross-Elasticities Analysis: The software should consider the cross-impact between different products when determining optimal prices.
  3. Dual-Target Optimization: The software should allow businesses to set prices to hit two targets simultaneously – one to grow and one to protect.
  4. Accurate Forecasting: Accurate short-term forecasts are crucial for making informed pricing decisions.

Competera's Price Optimization Software ticks all these boxes, ensuring that retailers have a comprehensive, industry-leading solution for their pricing needs. With a time-to-value of just six weeks, it offers an unparalleled advantage in the world of retail price optimization.

Who wins with Price Optimization?

Competera is an industry-agnostic solution allowing to reprice products at any level from specific categories and stores to countries and world regions. However, for certain industries the performance is at its best.

Offline B2C retailers

Multi-brand retailers

1000+ SKUs under management

Price elasticity lifehacks to leverage the changesin buying behavior

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Check your pricing health in 3 clicks

Dynamic AI pricing solution for any size and complexity

At the heart of Competera Price Optimization is a unique engine for searching optimal price points. It can simultaneously set prices for any number of products with surgical precision.

When calculating new prices, the AI algorithm identifies cross-product dependencies and demand patterns, taking into account own elasticity, cross-elasticities, sales cannibalization, and up to 20 other pricing and non-pricing factors.

Solution for any size and complexity

Forget black boxes: every recommendation is explained

Figure out the reasoning behind the optimal price recommendations.
Competera interpretability features allow to:

  • get insights on what was behind the Price Optimization engine’s decisions;
  • check out how the set limitations have impacted the search range;
  • find out what the demand elasticity curves look like;
  • understand how the new price point impacts own product sales and what halo effect it has on other products in the category.
No more black boxes

Software Trusted by Customers Across the Globe

Every Competera’s client can recover previously lost revenue and gross margin by 8% and 6% respectively

Hit your targets

Typically, a pricing manager can operate with up to 10% of key positions in different categories. Competera expands their capabilities to cover the whole product portfolio.

Price Optimization makes it possible to adjust and run a wide variety of pricing strategies. All you need is to select the metrics to grow and to protect. The rest will be done by the machine.

Hit your targets

Outstanding accuracy

With Competera Price Optimization, businesses can operate with short-term sales forecasts of 90+% accuracy. It means you can predict the impact of your decisions and determine their effectiveness risk-free.

Thanks to high accuracy, you can forget about unjustified pricing actions, incorrect promo ROI estimations, or margin-draining stock clearance.

Outstanding accuracy

How to get AI-powered optimal pricing in 60 days

Competera considers your entire product portfolio when creating price predictions. Optimal prices are determined in a 4-step process:

Step 1

Add 2 years worth of transactions, stocks, price lists, promo calendars and product references

Step 2

Define your targets and choose a repricing model to increase sales volume or revenue, optimize promo, clear stock

Step 3

Add your rules and constraints

Step 4

Get optimal prices, apply price recommendations, and feed in to your ERP

Start

2 months

See how good Dynamic Pricing can perform. Based on Real Business Cases.

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Why Choose Competera Price Optimization?

AI-driven

Competera adapts the latest AI, machine learning and deep learning algorithms to the needs of retailers, helping them switch to fact-based pricing. It brings a shopper-centric experience with prices and a balance of margin and turnover.

Rapid

High speed equals short time to profit. It takes only 6 weeks to fully deploy a customized solution that fulfills client needs. Compared to other types of solutions, our time-to-value is outstanding.

Tech Made Simple

Competera Price Optimization features allow each pricing team to play by their own rules, choosing different pricing solutions and modules for specific tasks. And do so with ease and convenience – in one dashboard.

Best Analytics / BI Solutions

E-commerce Germany award

Price Optimization Solutions

Constellation

Trusted Vendor 2022

Crozdesk

Top 3 startups at the AI Summit

London Tech Week

Now Tech: Pricing and Promotion

Forrester

G2 High Performer 2022

G2 Crowd