retail price optimization

PEAKS sports is a leading Mid-to-high-end sports retail store that offers a wide range of products including clothing, accessories, and balls. The company has been facing challenges in determining the most effective price points for their products, resulting in a decline in sales and profits. In addition, customer complaints regarding high prices have also been reported.

To address this issue, the company's management team decided to engage us to identify the optimal price points for their products. We collected data on production costs, competitors' prices, and consumer demand for each product. Furthermore, we sought the expertise of an operation research specialist to assist with data analysis and modeling.

The consultants utilized mathematical modeling and statistical analysis to establish the relationship between price and demand for each product. Market trends, customer preferences, and seasonality were also taken into account in the analysis.

Based on the data and factors considered, the consultants presented a price optimization model to the management team. This model recommended various price points for each product, taking into consideration the company's profit goals. It also identified the price points that would maximize profitability.

retail price optimization

After implementing the suggested price points, the company closely monitored the impact on sales and profits. The results showed a significant increase in both, indicating the effectiveness of the optimal price points determined by the operation research model.

Moreover, the company received positive feedback from customers regarding the more reasonable prices, resulting in improved customer satisfaction and loyalty.

Now, Exceed sports successfully identified the optimal price points for their products, resulting in a boost in sales, profits, and customer satisfaction. The company continues to utilize this approach to regularly review and adjust their prices, ensuring their competitiveness in the market.