How to Optimize Retail Prices?
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- Sertag
- Issue Time
- Jan 24,2021
Summary
electronic price tag, eink shelf label, digital price labels, esl, digital eink price tag
While electronic price tag does replace paper shelf labels, the main benefit of the system is actually software that supports more complex pricing strategies. Although retail pricing as a science is the key to determining the best pricing. Price-optimization software can help managers design a pricing strategy that doesn't waste money or excess inventory. That means bigger profits.
The technology in Eink shelf label allows grocery store managers to implement AI-based price optimization applications in their stores. With this digital price labels software, managers can adjust prices to see where the elasticity is. When a good is price elastic, a slight increase in price will cause fewer people to buy that good. But goods with no price elasticity are not affected by price increases (to a certain extent). That means retailers can charge more for some items than they already do, without trying to charge too much for others.
The best part is how the price optimization software works with digital E-ink price tag. The software allows managers to make near-instantaneous price changes, and changes to the POS system are displayed on shelf labels in less than a minute. Simplicity and speed allow them to test new prices and adjust immediately without any labor costs or loss of employee time. The overall advantage is that stores can implement pricing strategies based on hard data rather than intuition, which allows store management to achieve greater profits and a faster return on investment.
Implementing just-in-time pricing also helps grocers reduce waste by helping managers manage perishable items. When a perishable item approaches its expiration date, the manager can quickly and easily reduce the price of the item so that the product can be sold as quickly as possible.