How to Optimize the Pricing in retails

Time:2020.12.31     Author:sertag

  While ESLs do replace paper shelf labels, the main benefit of the system is actually the software that enables a more sophisticated pricing strategy. Though retail pricing as a science is the key to determining optimal pricing. Price optimizing software can help managers devise a pricing strategy that neither leaves money on the table nor leaves excess inventory on the shelves . And that means greater profits.
  The technology in ESLs allows grocery managers to implement AI-based price optimization applications in their stores. With this ESL software, managers can adjust prices to see where the elasticity is. When an item is price elastic, a slight upward change in price can lead to fewer people buying it. But an item that isn’t price elastic won’t be affected by raising the price—up to a certain point. That means retailers can charge more for certain items than they already do, while not trying to charge too much for others.
  The best part is how the price optimization software works with ESLs. The software allows managers to make near-instantaneous price changes, with changes on the POS system appearing on the shelf label in less than a minute. The simplicity and speed let them test their new pricing and make adjustments immediately, without any labor cost or loss of employee time. The overall benefit is that stores can implement pricing strategies based on hard data instead of intuition, which allows store management to realize greater profits and see a faster payback on its investment.
  Implementing instantaneous pricing can also help grocers reduce waste by assisting managers with management of perishables. As a perishable item approaches its expiration date, the manager can quickly and easily drop the price on the item to make the product be saled as soon as possible.