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The Smart Report - Get the latest insights on the global AI in retail research study

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Buying and Merchandising Solution: Price Optimization

Right price, right time, right channel, automatically

  • 15%

    improved revenues

  • 5%

    improved profits

  • 20%

    stock levels reduction

  • Multi-objective: boost customer experience, brand perception and loyalty
  • Dynamic: market-driven, accurate forecasting
  • Automation: optimizing full-price sales across channels and inventory
  • Life cycle pricing: improved sales and inventory performance
  • Speed to action: improved margins and inventory turn, sell-through

Why Blue Yonder Price Optimization

Pricing is a core strategic component in retail, influencing not just the company's profitability but also brand image and customer experience. Blue Yonder Price Optimization automatically sets the optimal prices to deliver the best bottom line without compromising brand's promise to its consumers.

Our solution delivers optimized prices for every channel and every product according to consumer demand, brand loyalty and competitive advantage. The solution learns the relationship between price changes and demand while incorporating a retailer's business strategy.

Blue Yonder’s Price Optimization solution rapidly senses vital demand signals from changing market conditions and data such as sales, promotions, weather and events. It serves retailer's pricing strategy along the product's life cycle and provides a measurable impact on revenues and return on investment.


Regular Pricing

What it does

Our solution calculates item-level prices according to a retailer’s business strategy, consumer demand and market conditions. It enables consistent demand-driven pricing across all channels and market conditions.

What it delivers
  • Accurate demand forecast at item-location level
  • Forecasting and optimization based internal and external data such as competitive prices, weather, holidays
  • Prices per product per day for all channels, taking in account retailer's policies and rules
What are the benefits
  • Prices aligned with product category and business strategies
  • Scalable solution for omnichannel pricing
  • Pricing without compromising on the customer experience 

Markdown Pricing

What it does

Our solution drives markdown strategy balancing on consumer demand and inventory goals. It exploits the product’s demand through its life cycle and provides item/location and channel specific markdown strategy.

What it delivers
  • Profit or revenue optimized markdown optimization for each product
  • Prices consistent with retailer’s rules and policies
  • Competitive information as well as weather and holiday for markdown possible
What are the benefits
  • Fast time to value
  • Improved sell-through and inventory turns
  • Improved visibility into in-season and markdown merchandise


What it does

Our solution carefully calibrates the effect promotions have on demand, ensuring that any price recommendations are automatically adjusted for the promotional period.

What it delivers
  • Increased visibility and understanding of consumer demand during promotions
  • Identifies best and worst performing merchandise to advance in the product life cycle
What are the benefits
  • Maximized effect of promotions on revenues
  • Improved item-level price and sell-through performance

How Does Blue Yonder Price Optimization Work?

Highlights of Our Solution

  • Price optimization is based on machine learning instead of preset rules or hypotheses
  • Price optimization covers thousands of products at SKU/store level on a daily basis
  • Serving a customizable pricing strategy and strategic KPIs such as revenue or profit.
  • Blue Yonder operates a professional information security management system that is certified according to the ISO 27001 standard.

Customers Using Blue Yonder Price Optimization

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How OTTO automates its pricing and increases sales and revenue

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Price Optimization: Delivering Automated Pricing Decisions Daily for Grocery Retailers

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McKinsey: The Secret to Smarter Fresh Food Replenishment? Machine Learning

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4 global fashion insights that prove smarter pricing leads to higher profits

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