Retail Price Optimization

Context

Price optimization is using historical data to identify the most appropriate price of a product or a service that maximizes the company’s profitability. There are numerous factors like demography, operating costs, survey data, etc that play a role in efficient pricing, it also depends on the nature of businesses and the product that is served. The business regularly adds/upgrades features to bring more value to the product and this obviously has a cost associated with it in terms of effort, time, and most importantly companies reputation.

As a result, it is important to understand the correct pricing, a little too high, you lose your customers and slight underpricing will result in loss of revenue. Price optimization helps businesses strike the right balance of efficient pricing, achieving profit objectives, and also serve their customers.

Content

The data contains the demand and corresponding average unit price at a product - month_year level

Tasks

• Exploratory data analysis
• Data visualization
• Demand forecasting
• Price optimization