Pricing Excellence That Moves the Margin
Most retailers leave significant margin on the table because pricing is managed by intuition rather than data. We identify the opportunity, build the analytical foundation, and implement a pricing capability that sticks.
The Margin Is There — Most Companies Just Can't See It
Retailers and distributors consistently underperform on pricing not because of bad strategy, but because of bad processes. The data below comes from real implementations.
The Hidden Cost of Manual Pricing
Most pricing problems aren't strategic — they're operational. Here's what we see in almost every engagement.
Price Errors
If 1% of your prices are wrong — half over-priced, half under-priced — customers notice when it costs them but not when it saves them. You lose revenue both ways. Even a $0.10 mistake across 200 items, hundreds of stores, and thousands of transactions is a significant margin hit.
No Clearance Process
Without a defined markdown process, companies cut everything when clearing seasonal inventory — leaving money on the table that a structured approach would capture. Optimizing clearance at the store level using price elasticity can improve margin 6–10% on clearance items.
Bad Promotions
Promotions often feel like a crapshoot — wrong items, wrong price, cannibalizing higher-margin products. Using analytics and optimization to select the right items, set the right promotional price, and coordinate with supply chain can improve campaign margin by up to 20%.
No Local Flexibility
One-size-fits-all pricing misses the nuance of local demand, competitor pricing, and store-level elasticity. Setting prices at the corporate level and distributing them without local optimization leaves margin behind at thousands of individual locations.
The Pricing Excellence Journey
Pricing excellence is not a project — it's a capability you build over time. The journey has three stages, and we meet you wherever you are.
Foundation
Efficient management and distribution of prices
A solid pricing execution foundation allows you to set prices, resolve discrepancies, review problem spots, and distribute prices confidently — whether through batch or real-time integrations. This is the prerequisite for everything else.
- Centralized price management with local flexibility
- Automated error detection and alerts
- Price deployment velocity — changes reach stores quickly
- Reduce the 840 hours/year wasted on manual pricing errors
Intelligence
Data-driven decisions at every level
Once the foundation is solid, you layer in intelligence — using price elasticity, historical demand, competitive data, and machine learning to make better decisions at the category, store, and SKU level.
- Day-to-day pricing using elasticity and category rules (2–5% margin improvement)
- Promotion planning and optimization (5–20% campaign margin improvement)
- Clearance pricing using markdown cadence and elasticity (6–10% margin improvement)
- Competitive monitoring and proactive adjustment
Excellence
Pricing as a competitive advantage
At the excellence level, pricing is a strategic capability — fully integrated with merchandising, marketing, and supply chain. Pricing decisions are made in near real-time with confidence, and continuous measurement drives ongoing improvement.
- Real-time competitive response
- Full integration with supply chain planning
- Continuous measurement against baseline
- Pricing as a driver of strategic business outcomes
Four Stages to Get You There
We don’t just build models — we build a pricing capability your team can run independently.
Identify the Opportunity
Analytics-driven assessment of where pricing is leaving money on the table — by category, channel, and customer segment.
Build the Business Case
Quantified ROI analysis so the project pays for itself. We establish the baseline before any work begins.
Implement the Service
Centralized pricing service with the right data, models, governance, and tooling. Vendor-neutral — we work with BlueYonder, DemandTec, Impact Analytics, and Relex.
Measure & Improve
Continuous measurement of price performance versus baseline. The pricing capability evolves as your market does.
Pricing Insights
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Do You Have a Pricing Opportunity?
The first conversation is always about whether there’s a real opportunity. We’ll tell you honestly if we think there is.
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