SAS^® Regular Price Optimization

In today's era of consumer-centric retailing, success hinges on presenting customers with tailored product offerings that both satisfy unique demand and offer overall value. One of the most critical elements of a valuable consumer-centric offering is price. From a consumer perspective, the intersection between product and price drives most consumer purchase decision behavior based on perceived value.

Retailers need efficient approaches to manage the elements in their pricing structure across the organization and maximize profitability based on optimized prices for SKUs across categories and stores. This approach to price optimization must account for projected demand, known causal factors and business strategies – to generate precise pricing recommendations that can be consistently executed in the store to delight customers with a valuable offering that is also highly profitable.

SAS Regular Price Optimization automates and optimizes the regular price determination process at the product and store level. Regular Price Optimization utilizes SAS' powerful optimization analytics and forecasting engine, in conjunction with business rules that reflect pricing strategies, sales and margin goals, and competitive data, to optimally generate regular price recommendations for products. This in turn enables retailers to meet margin and profitability targets while also exceeding consumer value expectations.

Benefits

• Increased Revenue and Margin
• Unparalleled Price Management Efficiency and Precision
• Alignment to Market Conditions
• Full Lifecycle Pricing Determination and Execution

Features

• Automated Pricing Models and Recommendations - SAS Regular Price Optimization systematically recommends an optimal set of prices based on category objectives, pricing strategy, business rules, competitive data and forecasted demand.
• Best-of-Breed Analytics - Built for speed, efficiency and accuracy, the proprietary demand models bring proven scalability, automation and analytical sophistication to the forecasting process.
• Advanced Optimization Capability - Price recommendations are generated using state-of-the-art optimization techniques that can account for nonlinearities in the underlying mathematical formulation.
• Integration with Price Execution and Other Planning Systems - The solution can integrate to retailer's upstream (assortment planning/category management) and downstream (price execution) systems.
• Intuitive User Interface - SAS Regular Price Optimization adds tremendous flexibility and sophistication to the process of determining price strategy by incorporating an intuitive user interface.
• Scenario-Based Price Optimization at SKU and Store Level - The solution also has the capability of performing multiple what-if scenarios by altering category objectives, such as revenue targets, desired margins, or number of units to be sold.
• Management of Business Rules and Pricing Strategy - The SAS Regular Price Optimization solution allows users to manage business rules and pricing strategy along product and location hierarchies as well as on individual products or defined groups of products.
• Advanced Analytics That Provide Demand Insights - SAS Regular Price Optimization comes packaged with powerful analytics that help retailers understand demand and price sensitivity at both SKU and store level.
• Proactive Response to Changing Market Conditions - Regular price optimization alerts users of changing costs and competitive prices so that merchants can take timely action. It informs users of business rule violations and price change recommendations caused by market conditions.
• Visibility to Competitor's Pricing, Category's Performance and Other Exception Reporting - The SAS Regular Price Optimization solution enables retailers to understand category and product performance over time.

More details on SAS Regular Price Optimization are available in the fact sheet.

Manage the entire merchandise life cycle

SAS Regular Price Optimization is a component of the SAS Revenue Optimization Suite, the only software suite available today that helps retailers manage revenue and margin through the entire merchandise life cycle. This suite integrates advanced data management, forecasting and analytic capabilities to help retailers set and manage regular prices, plan optimal promotions and execute the most successful markdown strategies.