Intelligent Price Automation

Dynamic Pricing

aifora Dynamic Pricing

Flexible price adjustments in real-time: by constantly monitoring competitive prices, local demand and current events, we enable dynamic pricing for all channels.

Problem

The tracks that customers leave behind when surfing the Internet are worth their weight in gold for retailers. Retailers can evaluate every visit history and not only determine which products customers are interested in, but also how much customers are willing to pay for them. In this way, prices can be dynamically adjusted to current demand behavior, also taking competitors’ prices into account. With the introduction of electronic price labelling, dynamic pricing can also be implemented efficiently in brick-and-mortar retail. This opens up entirely new possibilities, especially for chain stores. Even if it doesn’t appear so at first glance, the customer is also the focus of dynamic pricing. After all, the ultimate aim is to determine a price for the consumer in line with the market, measured in terms of price acceptance.

aifora Dynamic Pricing

Our algorithms are initialized through a combination of historical and real-time data and are permanently self-optimizing. We provide competitive prices which are weighted and taken into account when determining prices. The algorithms constantly analyze the interplay between price optimization and customer reaction. The user can immediately understand the effectiveness of the price settings and thus react quickly and flexibly to changes in competitors’ prices, demand and other market conditions.

Key Feature 1 – Exception Management

Our dynamic pricing algorithms are self-learning and improve each time prices are set. They not only support the decision-making process, but also automate it as far as possible. Thanks to intelligent exception management, however, the user can identify and intervene at any time, taking into account the predicted impact.

Key Feature 2 – Competitor Prices

The integrated price scraper automatically captures and records all prices of relevant competitors. In contrast to the widely used re-pricing approach, we consider competitors’ prices as weighted pricing factors. The danger of participating in downward price spirals is thus ruled out. In addition, the retailer ensures that competitors’ prices are always measured in the context of their own brand strength.

Key Feature 3 – Multiple Pricing Strategies

Our service is able to depict different pricing strategies. The target functions can be flexibly configured to maximize sales and profit or to optimize inventories, all down to article level. Our customers are thus able to pursue differentiated strategies within the product ranges and hence exploit the entire pricing potential.

See also:

Dynamic Pricing with ESL/EPS in Sports Retail

Blog: Profit from the bargain hunting of customers!

Blog: The price is right