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A method and system to swiftly adjust pricing with multiple snapshots

IP.com Disclosure Number: IPCOM000241012D
Publication Date: 2015-Mar-19

Publishing Venue

The IP.com Prior Art Database

Abstract

This method is help retailer swiftly adjust pricing and real-time to forecast the volume, gross margin

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This is the abbreviated version, containing approximately 50% of the total text.

Page 01 of 10

A method and system to swiftly adjust pricing with multiple snapshots

When adjusting single or several products in tiny ranges, repetitive work like setting override price/rules is needed to process traverse comparisons in order to achieve the most optimized solution.

Problems:

1. It is a painful and time-consuming work to set up preparation data and scenario runs

Override prices/rules could be set arbitrarily according to users' experience, however, even the most experienced manager s don't stand a chance to pinpoint the most accurate optimized price for first time . So repetitive price inputs are needed in order to supply comparisons results.

2. Manual comparison is not an efficient way to get final result

Get results out of different scenario runs and implement comparisons is a tough because data itself is boring and abstract , not as intuitive as chart.

A new graphical representation to reveal real-time product metrics

1. Reveal real-time volume and gross margin change for adjusted product

Show its real-time volume change when price change

Show its real-time gross margin change when price change

2. Reveal real-time volume and gross margin change for products related to adjusted product (demand group level)

Show demand group level real-time volume change when price change

Show demand group level real-time gross margin change when price change

3. Reveal real-time volume and gross margin change for category which contains adjusted product (category level)

Show category level real-time volume change when price change

Show category level real-time gross margin change when price change

Section

Section
111..Sliding bar to adjust price

A certain price range can be defined here. Two end points represents possible highest value and the lowest value. If highest point exceed certain calculation highest point, then highest point will be reset to calculation point, same for lowest calculation point.

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Section

Section

222... Price Dashboard - Product metric Chart

When using Sliding bar to adjust price, the volume change and gross margin change will be automatically present in the Product Chart, if it's increased than current value, will display as red, if it's decreased than current value, will display as grey colour.

[

[Model Model

Model]

  ]

[Sales Model (model _1)] ln(DGVolume/avg_DGVolume + 1) = a1*DGPrice + a2*ad + a3*display + a4*multiple + a5*seasonality


+ a6*trend + ∑[a7*ln(DGVolume_other/avg_DGVolume_other + 1)] + intercept

[Share Model (model_2)] ln(share - avg_share) = b1*(basePrice - avg_basePrice) + b2*(ad - avg_ad) + b3*(display - avg_display) + b4*(multiple - avg_multiple) + b5*(discount - avg_discount) + intercept

Coefficient

Coefficient

[[[productPrice

productPrice

productPrice

--->>> productVolume

productVolume

productVolume]

]


DGPrice = aggregate(productPrice)


DGVolume = model_1(DGPrice)


Share = model_2(productPrice)

productVolume = DGVolume * share

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