TAKE ADVANTAGE OF CROSS-PRICE ELASTICITIES AND MAXIMIZE YOUR EARNINGS
You want to identify functionally similar and thus exchangeable items within your range. To optimize the prices for your product alternatives (substitution products) completely automatically at the same time. To promote the sale of particularly high-margin substitution products.
The prudsys RDE identifies items within your product portfolio that exhibit strong substitutability. Such a relationship exists when goods are functionally exchangeable. We refer to this as cross-price elasticity. In the presence of positive cross-price elasticity, the price reduction of a product entails a significant decline in sales in the case of a substitution product. The reverse is of course also true. If, for example, the price of butter increases significantly, the demand for margarine also increases at the same time. At the same time, the sale of butter declines noticeably. The AI takes this effect into account and automatically adjusts the prices of your substitution goods with regard to your target function.
The prudsys RDE identifies exchange relationships between your items and automatically sets the optimal price in real time. The AI promotes the sale of alternative products with high margins, allowing you to maximize your earnings.