Clear Old Stock and Recover +3% of Previously Lost Margin
Hit the stock level and get maximum possible profit margin with discount depth differentiated on SKU-level, optimal markdown sequentions, and analytical prognoses on goal achievement.
Retailers lose money with traditional markdown campaigns
Traditional approach
- ‘Blanket’ discounts
- Diluted margin
- Uncertain probability of hitting stocks
![Traditional approach](/build/lazy-placeholders/pages/products/markdown-optimization/steps/step-1-content.dfa61fec.webp)
![Traditional approach Traditional approach](/build/images/pages/products/markdown-optimization/steps/step-1.c4bfb4b3.png)
Markdown optimization
- Discount differentiation at SKU-level
- Maximized margin
- Suggestions on sequential discounts and predictions on hitting stocks
![Markdown optimization](/build/lazy-placeholders/pages/products/markdown-optimization/steps/step-2-content.afcc1401.webp)
![Markdown optimization Markdown optimization](/build/images/pages/products/markdown-optimization/steps/step-2.5f3a471f.png)
What is under the hood of markdown optimization?
Competera’s RNN analyzes retailer’s historical sales data to recommend an optimal discount at an SKU-level so the targeted stock level is reached with a maximum margin rate.
Based on set parameters (max. promo depth, markdown’s time frames, expected stock level), the platform’s time-series based algorithm generates the prognoses on hitted the stock level and gained margin.
Data input
- Historical sales (min 2 years)
- Historical promo (min 2 years)
- Promo calendar
- Product description
- Product stock availability
Execution
- Suggesting sequential discount periods
- Calculating cross elasticities and sales cannibalization effect
- Differentiated approach instead of blanket discounts
- Preventing profit margin from drop
No more black boxes: every recommendation is explained
Figure out the reasoning behind the optimal price recommendations.Competera interpretability features allow to:
- get insights on what was behind the Price Optimization engine’s decisions;
- check out how the set limitations have impacted the search range;
- find out what the demand elasticity curves look like;
- understand how the new price point impacts own product sales and what halo effect it has on other products in the category.
![No more black boxes No more black boxes](/build/images/pages/solutions/by-need/increase-margin/step-4.99ad4083.webp)
How retailers win with markdown optimization?
![How leaders win with Competera?](/build/lazy-placeholders/pages/solutions/by-need/clear-stock/steps/step-content.3bd4f564.webp)
![How leaders win with Competera? How leaders win with Competera?](/build/images/pages/solutions/by-need/clear-stock/steps/step.bb44c7b9.jpg)
![How leaders win with Competera?](/build/lazy-placeholders/pages/products/markdown-optimization/steps/step-3-content.adff2677.webp)
![How leaders win with Competera? How leaders win with Competera?](/build/images/pages/products/markdown-optimization/steps/step-3.c035acf9.png)