The aerobatics in retail pricing

Pricing management
solution to move on
new heights of your business

The intelligent system improves the efficiency of working with dynamic retail pricing using Data-driven approaches

  • Machine Learning (ML)
  • Artificial Intelligence (AI)
  • Big Data
Gross margin increase by 5-15% depending
on the category
New opportunities for your retail company's profit growth
Confident piloting in turbulent market conditions
Pushing the envelope of your business opportunities
Predicted result and mitigated risks
SmartPricing Benefits
Gross margin increase
by 5-15%
Subject to the sensitivity
to price changes and
competitive environment
3 months Comfortable transition period
to SmartPricing service
Scalability of over 500 stores Computing architecture for over 250 million transactions per year
Our solution
will help you:
Key functions and modules
Regular retail pricing
  • Pricing based on elasticity, cross-elasticity, sales traffic to separate SKUs.
  • Pricing taking into account the distribution of goods by price segments, substitute goods, RMP (Recommended Minimum Price), RRP (Recommended Retail Price)
  • Possibility of separate pricing for formats, regions, clusters, individual stores, taking into account the goals: maximizing gross income or revenue
  • Control calculation limits for the category (minimum profitability, maximum price increase (for the calculation, for the period)) based on the strategy: income/revenue/traffic generator
  • Preliminary calculation with sales forecasting, taking into account new prices, inventory, purchase price and manual adjustment
  • Smart rounding of prices, setting up rounding rules and cents, accounting for product lines
Private Label brands pricing
  • Pricing based on a given price gap between PLs and brand goals
  • Optimization of the price gap between PLs and Brand goal
  • The possibility of defining Brand goals automatically
KVI pricing — competitive SKU indicators
  • Loading competitors’ prices
  • Choosing a strategy for setting prices KVI (goods indicators): the prices are equal to the competitor’s price, the price is higher by a given %, the price is lower by a given %
  • Smart rounding of prices KVI
  • Control price reduction on KVI
Promotional pricing
  • The possibility of promotional pricing by store levels (formats / regions / clusters)
  • Possibility to select SKUs recommendations in promo, taking into account the Penetration Index of entry into the receipt, the roles of goods (Basket drivers, Gross income generators), taking into account the allocation of Super-elastic promo SKUs and purchase prices
  • Selection and calculation of SKUs for inclusion in promo, selection of the duration and depth of discounts, taking into account the lift
  • Recalculation of regular prices taking into account promo prices
  • Sales forecasting based on new promo prices and OOS
Optimization of the regular prices calculation parameters
  • Determination of optimization strategy (gross margin, revenue, balanced strategy)
  • Setting restrictions on the possible reduction in the number of sales and price increases
  • Automatic search for optimal pricing solutions and appropriate parameters to achieve a given target value, taking into account restrictions
  • Saving the found optimal parameters by default for automatic calculations
Competitive pricing
  • Estimation of price elasticity taking into account the price of competitors according to the competitive demand function
  • Calculation of a price point based on several competitor prices
  • Determination of the competitive pricing strategy, taking into account the validity period of competitors’ prices and the coefficient of influence
  • Setting the method for calculating the prices of priority competitors
  • Setting the permissible deviation from the price point
  • Automatic detection of pricing deviation from competitors’ prices, taking into account the optimization strategy
KVIs list recomendation optimization
  • Classification of SKUs according to the Penetration Index, Elasticity
  • Accounting for the range of competitors’ prices
  • Highlighting among SKUs products recommended as KVI as price perception and basket generator
  • Accounting for price segments, selection of KVI in different price segments
  • Uploading recommendations to an Excel file
  • Saving recommended SKUs as KVI for calculations
KVI basket management
  • Creating a basket and adding products to the KVI basket
  • Removing an item from the KVI basket
  • Setting basket parameters and individual product parameters in the basket
  • Calculation of SKUs characteristics in the KVI basket
  • Calculation of regular prices for individual baskets in all categories included in the KVI basket
Package Automation of Pricing
  • Selecting multiple categories for simultaneous calculation
  • Calculation of several categories in the background
  • Automatic creation of reports on recommended prices for selected categories
  • Setting the category calculation schedule
  • Starting recalculations for a specific event
  • Setting priorities for revaluations, taking into account the restrictions of changing price tags
Seasonal pricing and markdown sales
  • Calculation of optimal entry prices for the season, taking into account the period of bargain sales and inventory
  • Dynamic determination of the optimal discount for a bargain sale in the current bargain sale period, taking into account the actual sales statistics and inventory
  • Generating a report on recommended bargain sale discounts for specified bargain sale periods
New product pricing
  • Choosing a pricing strategy for new products («Skimming» or Entry into the category)
  • Setting the maximum price gap parameter for a category Entry strategy
  • Automatic identification of the price segment and the target product for the entry strategy
  • Calculation of prices for new products taking into account the selected pricing strategy of new products
Competitive pricing. E-commerce
  • Uploading price data from aggregators from aggregators and price monitoring platforms according to a schedule or automatically when prices change
  • Integration with Google analytics of relevant requests (by brand, model or characteristics)
  • Feedback accounting — Uploading data with preliminary analysis and recognition of positive or negative reviews and counting their number (or integration with feedback platforms)
  • Selection of comparable products for monitoring using a training sample (automatic comparison by product name) and cross elasticity or strictly set SKUs
  • Automatic recalculation of prices according to the schedule, according to deviations from sales, receipt of new competitor prices, deviations on requests
Key Performance Indicator Analysis
  • Analysis of Key Performance Indicators (KPIs) dynamics: Revenue, Sales, Gross Profit, Margin Profitability, Index of penetration in the check, for both the current year and year-over-year, with a breakdown to the weekly level.
  • Analysis of price segments and distribution of Stock Keeping Units (SKUs) within price segments.
  • Sales and gross profit dynamics analyzed by product categories and SKUs.
  • Evaluation of the Price Index for KVIs and competitive pricing.
Event and Calculation Schedule Management
  • Creation of various events (such as changes in purchase prices, competitor prices, etc.) for automatic recalculation.
  • Email notifications of events and recalculations.
  • Setting and managing price calculation schedules
Scenario and What-If Analysis
  • Creating calculation scenarios.
  • Setting strategy and rules for individual scenarios.
  • Calculating prices for selected scenarios.
  • Comparing forecast indicators of different scenarios.
  • Applying parameters and calculation rules of the selected scenario to future calculations.
Revaluation Management
  • Setting limits for revaluations per day.
  • Managing priorities for revaluations.
  • Viewing calculation results and forecast indicators.
  • Approving revaluations and automatically sending them for price setting.
Omnichannel Pricing
  • Defining pricing strategy options across channels/formats.
  • Monitoring and maintaining defined omnichannel pricing strategies and rules.
  • Setting calculation schedules and frequency for different channels/categories/regions.
  • Online price parsing.
  • Application for offline monitoring.
  • Monitoring management dashboard.
  • Analytics on monitoring data.
  • Report export.
For whom?SmartPricing is a flexible, customized system, therefore it is suitable for all types of retail business
Grocery stores
Pharmacy chains
Construction sector
Cosmetics and household goods
Three-tier retail business model
The statistics of price elasticity calculations for goods categories can be provided according to three typical tiers of a retail business model: store format, geography and pricing zone, and store clusters.
Store FormatSupermarket
Region/City New York
Region/City Moscow
Store Cluster 1Midtown
Store Cluster 2Downtown
Store Cluster 3Newton (Boston area)
Projects and Cases
Begemag is one of the largest retail companies in Sibrian region. Since 2018, the retailchail has been part of the "Good Choice" alliance. The project goal was to maximize gross margin, result is GM + 4.2%
SMALL is Kazakhstan's leading Retailer in terms of number of stores. The goal was to increase VA, increase competitive efficiency through cluster pricing, and automate pricing processes. Result: IA + 1%, TO + 18% (Median values for all groups involved in the project).
Ambar is the second largest multi-format retailer in the Khabarovsk Territory. The goal of the project was to increase GM, while providing the opportunity to provide centralized management of the pricing process in all formats and regions, Result: GM +12% Revenue +9% (median values for all groups involved in the project).
Maxi is a Russian retailer developing a chain of grocery supermarkets and hypermarkets in the Vologda, Arkhangelsk, Kirov and Yaroslavl regions. As of October 1, 2020, the Maxi retail chain has more than 60 stores in 9 cities of the North-Western, Central and Volga districts. The goal of the project was to maximize GM, to explore the possibility of automating pricing processes. Bottom line: GM + 6.4%, and topline Revenue + 2.4%
Customer Feedback

SmartPricing has allowed us to improve prices for tens of thousands of our cheques. The profit has exceeded our forecasts. We have found that SmartPricing helps increase profit significantly, taking into account the sensitivity of buyers to the prices and without reducing traffic in stores.

Pavel Zhilnikov Pricing Project Manager / Begemag

Applying SmartPricing pricing techniques, in particular, improving the range within price segments, our company increased the gross margin profitability by 0.5 percentage points without losing the revenue of comparable stores.

Evgeniy Razbezhkin CCO / Dvorik retail network

The calculation of the best prices considering price elasticity allowed increasing the absolute gross margin by 5 and 11% in yogurt and bread categories at pilot stores, without losing the penetration index of these categories in the cheque.

Timur Kosenko CEO / Olivye retail network

We have launched a pilot SmartPricing project, which resulted in a positive effect in terms of the pilot outlets with a 15% increase in profitability while setting retail prices of major competitors. We have reached the project targets.

N. L. Fetisova Ambar CCO
We help

We find an individual solution for each company defining and strengthening the unique competitive advantage and “DNA” of your company and combining them with leading business practices, concepts, and technologies

© COPYRIGHT 2018. ALL RIGHTS RESERVED myRetailStrategy Partners.