Price Optimization is quickly being recognized as one of the most important factors in increasing not just revenue but also profits, with minimum effort required compared to other growth strategies.
Price Optimization, or Repricing, as it is often known, is the automated setting of prices via AI and computer programming. This replaces the standard manual process of setting prices, which is labor intensive and prone to error and misjudgment. Price Optimization has typically been ring fenced to global corporations with infrastructure and budgets to match. However with the increase in open technical knowhow, this has opened up the genius of Price Optimization to both small and medium businesses alike on subscription models. Thus, allowing companies access to software that would normally cost in excess of 7-8 figures to create. One example of this is Seller Republic for both eBay and Amazon.
In a normal model pricing is handled by a company employee though a manual and lengthy method. Each product is analyzed to determine a selling price and this is compared against competitors on a daily, hourly or even per minute basis. Thus a round the clock job. This job is error prone as no matter how great a workers analytical skills are, the number crunching and monitoring is impossible to manage without eventually slipping up. A simple miss of a digit often results in huge losses.
Cost savings & finance generating
Not only do computers allow complete accuracy compared to manual methods, they also are simply significantly more effective at the end goal, of increasing sales, and ultimately profits. Either inbuilt or preset strategies ensure your strategies remain on target regardless of whether an employee is on the ball that day.
With the age of computing it brings accuracy unlike ever before. Users set rules which simply do not get broken. If you need a certain margin you get that margin.
Take the emotion away from pricing
Repricing manually is tricky especially when competing against human competitors who often spend their day adjusting prices. It takes a whole days work just to deal with one competitor and this becomes, ultimately, a fruitless task. Repricing takes the guessing game and emotion out of pricing and ensures that prices are changed solely based on your preset strategy and targets.
Decrease in workload – Increase in visibility, revenues & profits
Fundamentally Repricers decrease workload, increase sales, products and revenues. But most importantly they increase profits whilst reducing labor.