Drive margin by 6+%

Enjoy sustainable margin growth by shifting to portfolio-level pricing based on own price elasticities and cross-dependencies between products.

Traditional pricing approaches undermine sustainable profitable growth

Eager to boost financial performance of particular products, managers rely on traditional SKU-centered pricing. It creates cannibalization effects which damage price perception and lead to strategic cash leakages in the long run.
“As long as we used an SKU-centered approach, we could have gained a sales boost for a single SKU but the related products immediately dropped in volume”.
Gustav, Product manager
at a large European footwear retailer
Traditional pricing approaches undermine sustainable profitable growth
Traditional pricing approaches undermine sustainable profitable growth

Portfolio-based pricing is the cure

Shifting from SKU-centered to portfolio-level pricing, businesses can balance sales and profits so the bottom line metrics grow sustainably.
To help retailers make the transformation, Competera offers a unique solution capable of taking into account all cross-product dependencies within a category to make sure every price recommendation is optimal in terms of the overall business performance. Such an approach enables the businesses to gain:
  • an average of 6% margin uplift
  • increased customer lifetime value
  • up to 60% promo pressure reduction
  • increased average selling price / basket value
  • an average of 9% revenue growth
Portfolio-based pricing is the cure

How portfolio-based pricing works?

Competera's portfolio pricing relies on a
demand-based pricing engine powered with neural networks measuring products own price elasticity and cross-elasticities to ensure that goals on both the product and the category level are achieved.

The algorithms can work on separate assortment groups, which allows parallelization and scalability. The accuracy of every recommendation is achieved through context-dependent price elasticities and a high-performance solver capable of shoveling through billions of possible price combinations to find the right one.

Data input

  • Transactions (min 2 years)
  • Promo calendars (min 2 years)
  • Price lists
  • Inventory
  • Product reference tables

Approach

  • Measuring the response of demand to price changes
  • Processing historical data to evaluate the impact of pricing and non-pricing factors
  • Selecting optimal prices for the whole category
  • Aligning goals on category and portfolio levels

See advanced pricing software in action

Competera helped a large consumer electronics retailer with $500 million in annual turnover to improve profitability by gaining a 17.9% margin boost.
“Price wars continue becoming more intense and dangerous. And setting optimal prices has no alternative as a means of effective profit and revenue management. With price optimization, retailers can find the right balance needed to stay profitable and maximize margin"
author photo
Tatyana Moiseenko
Commercial director at Foxtrot
See advanced pricing software in action
See advanced pricing software in action
Best Analytics / BI Solutions

E-commerce Germany award

Price Optimization Solutions

Constellation

#1 eCommerce Solutions Software 2019

Crozdesk

Top 3 startups at the AI Summit

London Tech Week

Now Tech: Pricing and Promotion

Forrester

High Performer 2020

G2 Crowd