How can Luminate Pricing help my business?

In today’s retail world, a 1 percent change in price leads, on average, to a 10 percent change in profitability. The smaller your margins, the more pronounced the impact that pricing will have on your business. But how do you know what price to set in a competitive world – where your customers’ willingness to pay is affected by brand, location, related products in the same channel and a host of other factors? And how do you create a markdown strategy that doesn’t result in unsold product, cannibalization or a race to the bottom with your competitors?

When rules-based pricing is no longer enough to create an optimized pricing strategy, you need powerful artificial intelligence to determine the optimal price for each product throughout its lifecycle. The JDA Luminate Pricing family of solutions delivers the competitive edge you need in a fast-evolving retail marketplace.

Price Optimization
JDA Price Optimization determines the impact of pricing changes on demand, calculating the price elasticity of demand for each product. With continuous learning and the ability to support your choice of pricing strategy, Price Optimization makes sure that your price implementation matches your overall strategy and keeps you competitive in every market, across all channels and in every store.

Markdown Optimization
Markdowns are a key part of the retail cycle – and with margins tighter than ever, you can’t afford to leave money on the table at the end of a season or the end of a product’s life. JDA Markdown Optimization leverages powerful AI to help you avoid problems that can destroy profitability: Excess inventory leads to costs that can also erode profits. And older science-based methods and statistical models, or intuition about your customers based on past experience, won’t be enough to help you optimize markdown pricing today.

Features

  • Delivers data-driven, continuously optimized prices at the finest levels of granularity: store, product, color and size
  • Automatically sets revenue- and profit-maximizing prices based on current and historical sales data and product master data
  • Powerful algorithms scientifically determine price elasticity of demand with continuous learning
  • Determines pricing while accounting for competitors’ prices as well as substitution and cannibalization effects
  • Supports a variety of pricing strategies, including revenue optimization, profit maximization, stock-based pricing or a mix of approaches

Benefits

  • Lowers return rates and increases customer satisfaction through more competitive pricing
  • More profitable markdowns at end of season or end of a product's life cycle
  • Reduced safety stock levels, leading to lower inventory costs
  • Better optimized prices for both normal seasonal sales and product clearance
  • Reduces time and cost of price management and repricing

Find out how Luminate Pricing can help you

Expert advice, extended product information, and so much more. Contact one of our highly trained representatives today.

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