Markdown Price Optimization Solution
Autor: Churchill Systems Inc.
Manage the lifecycle of each item in a category by store by reducing/ maximizing markdown prices.
Churchill’s Markdown Price Optimization software solution combines the strength of two proven Churchill products: (1) Short Life Cycle Demand Forecaster™ (for sell-through forecasting) and (2) Price & Promotional Demand Forecaster™ (for price lift forecasting).
Recommended pricing action include:
- When to take markdowns
- The number of markdown levels (stages) that are best for the category
- The specific price discount the best achieves the business objectives (revenue, clear inventory, etc.)
Churchill’s Markdown Price Optimization solution begins by monitoring and flagging seasonal SKU/Locs that are projected to miss/meet/exceed planned sell-through goals. Having identified troubled SKU/Locs, Churchill’s MPO next surveys potential price change options for financial benefit. If MPO can identify a profitable alternative, MPO will recommend the pricing action for approval.