AIR Dynamic Pricing

Intelligent Price Optimization by AIR Dynamic Pricing: The Artificial Intelligence (AI) changes thousands of prices in a timely manner considering competition, costs, Stock Keeping Unit (SKU) relationships, price zones relationships, price sensitivities, and more. AIR Dynamic Pricing helps retailers to optimize their pricing strategy and execution.

Powerful machine learning algorithms instantly calculate optimal prices by comparing numerous evolving factors in volatile markets against various pricing strategies. Intelligent algorithms optimize thousands of prices instantly, adjusting for the complex interconnections of pricing factors including costs, competition, price sensitivities and even the weather. The AI optimizes according to sales, revenue or margin goals. Retailers apply these strategies to segments defined according to product properties like brand or category.

AIR Dynamic Pricing will always find the best price to achieve retailer`s stated goal.

• Self-developed AI algorithms made by prudsys | Member of the GK Software Group

• Self-learning Artificial Intelligence (AI) based in Reinforcement Learning: Every single learning step is checked and evaluated. If it serves to achieve the goal, it is rewarded. If it does not, it is punished. A system that develops itself in this way learns to “think” economically

• Pricing strategy simulation: Reveals the business impact of proposed pricing strategies in risk-free virtual test environment

• Multiple optimization strategies: AI algorithms for regular and markdown pricing set optimized prices to drive retailers ideal combination of sales volume, revenue, and margin

• Multi-level pricing strategies: Different price strategies specific to categories, brand or other product groups

• Support for complex corporate structures: Simplified omnichannel price evaluation and execution for organizations of all sizes and structures

• Price support or fully automated pricing: Dynamic Pricing can partially or fully automate price adjustments in order to optimize category management

• A new product relationship type enables retailers to automatically adjust prices to specific quantities.

• A new product relationship type links any article. A common use case for this is the “good-better-best” relationship. For example, retailers can set prices for a certain product in relation to the same product type from other manufacturers and define price differences.

• A new deep dive view enables retailers to analyze the optimization process of an item’s price in more detail. Every step of the price optimization is now mapped.

• New data import function: In addition to the previous import options for transaction data, retailers now have the option of importing sales transactions from SAP Consumer Sales Intelligence.

• Available item product images: Retailers see item product images in the item explorer. The display of the product images has been implemented for both the list view and the detailed view.

• To avoid creating another local pool for data, there is now the option of connecting AIR Dynamic Pricing to a central directory service via the LDAP protocol.

• Alert Notifications: Retailers can now configure automatic e-mail notifications to one or more addresses in order to better monitor certain processes

• Release 2.1.0 includes new AI algorithms and models that provide improved forecast and optimization techniques.

Our clients in fashion retail have specific requirements. Read how our Artificial Intelligence deals with them:

1. The life cycles of many items in a fashion assortment are comparatively short – often only about 4 to 6 months. During this period of time, an item must be launched successfully, must generate as much profit as possible in its peak season and must be sold out on time (and yet margin-saving) to free up stock for the next season.

AIR Dynamic Pricing …

• offers various algorithmic procedures for pricing all product life cycle phases

• allow to control the optimization target (revenue, sales, profit etc.) for each product life phase and for each product group in a differentiated way

• should provide relevant, demand-based prices at least daily

2. Fashion assortments are usually both broad and deep. This means that they contain many different items in many variations. Think about the number of dresses, pants and shoes you see in one shop - as well as the number of sizes and colors.

AIR Dynamic Pricing …

• has a master-variant capability (means that master and variants can be treated both as a relational unit and separately from each other - both in the algorithmic calculation of demand and in the final pricing)

• also has a powerful tracking functionality in order to be able to record and process demand in detail at variant level

• is able to process large and complex data volumes with high performance

3. Promotions and marketing campaigns are an integral part of every fashion season.

AIR Dynamic Pricing…

• can suggest products for marketing campaigns that are relevant and timely for customers, for example based on current demand

• can control quickly and easily so that promotion products can be excluded from the algorithmic price calculation with just a few clicks

• is able to differentiate between promotions and “normal” purchasing behavior so that promotions do not lead to a reduction in the general price level

11TEAMSPORTS (https://www.11teamsports.com/) sells sports and lifestyle goods at the best price: AIR Dynamic Pricing by prudsys | Member of GK Software Group ensures intelligent prices for 11teamsports, both in the online shop and in store.

Challenge:

• Pricing process automation

• Size-specific pricing

• Increasing margins, revenue and number of orders

• Optimal product pricing according to status and product life cycle

Solution:

• AIR Dynamic Pricing automatically calculates the prices of several hundred thousand items on a daily basis while taking into account many parameter

• Use different pricing methods: Optimize margins and revenue as well as sell-off optimization

• Up-to-date prices in online shops and bricks and mortar stores

Result:

• Automatic price calculation for over 400,000 product variants

• More time for category management to make strategic price and product range decisions

• Increase in margins and revenue

• 3 % increase in number of orders

Tim Blümel, Director of Sales at 11teamsports: “Our price management has been very successful with prudsys and we have decided to pursue this partnership over the long term. We have been impressed with the intelligence behind the pricing solution and the professional support on the part of the prudsys project team.”

Whole story: https://prudsys.de/en/case/11teamsports/

https://air.prudsys.com/