Common uses
Price Optimization Models help businesses determine initial pricing, promotional pricing and markdown (or discount) pricing:
• Initial price optimization works well for companies with a stable base of long life-cycle products—grocery stores, drug chains, office-supply stores and commodities manufacturers
• Promotional price optimization helps set temporary prices to spur sales of items with long life cycles—newly introduced products, products bundled together in special promotions and loss leaders
• Markdown optimization helps businesses selling short lifecycle products subject to fashion trends and seasonality-airlines, hotels, specialty retailers and mass merchants