A new software solution that enables retailers and brands to forecast price elasticity of new products to determine optimal prices and increase margins is being launched next week.
The technology, called ElastiCast, “takes the guesswork out of pricing decisions with a real-time solution that can predict outcomes based on any price or point in time within a product’s life cycle,” according to its developer First Insight.
It works by processing consumer data through First Insight’s proprietary algorithms, thereby enabling merchants, planners and marketers to analyse various pricing scenarios and predict how consumers will react to different price points throughout the product’s life cycle – from initial pricing to markdowns to clearance.
Results allow retailers to see the distribution of demand, before they go to market, so they can set prices more intelligently.
“Through this new solution, we are empowering retailers and brands with the knowledge they need to feel confident that the price on an item will deliver the sales and margins they expect,” says Greg Petro, CEO of First Insight.
ElastiCast is a new capability within InsightSuite, First Insight’s predictive analytic platform which enables retailers and manufacturers to select, price, market and buy new products with no sales history. ElastiCast provides InsightSuite users with greater visibility into expected new product performance, months before the products are brought to market.
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By GlobalDataThe new solution will be showcased at the NRF Big Show 2018 in New York City from 14-16 January.
