VERITICO PRICE

Whether you’re a retailer or an FMCG manufacturer, pricing is crucial and determines your company’s bottom line. Working with discounts and low prices is tempting, but the risk of margin erosion is high.

The right price determines whether you make a profit or experience a loss. Marketers rely on various tools and processes to achieve optimal pricing, seeking a balance between the amount of discount and the revenue growth achieved. But how many times is a company able to think through and calculate all the variables, determine price elasticity, promotional uplift and the effects of cannibalization on other products?

VERITICO PRICE uses advanced algorithms to save you from the arduous calculations and recommend pricing and promotions that will achieve your desired results. VERITICO PRICE works tirelessly, allowing you to increase the frequency of repricing. VERITICO PRICE is accurate and data-driven, allowing you to create effective promotions that have the expected outcome. VERITICO PRICE can also recommend a price increase if it calculates that it will be worthwhile in the long run.

Efficient Promotions

Half of the retail sales come from promotions. This means more than 50% of all goods are sold through discounts, promotions, or leaflets.

Some categories have a promotional share of up to 90%, which means they are not sold at normal prices. In fact, the huge amount of promotional goods in each of the chains devalues the original intention and creates the illusion that almost everything is on sale. We are in a discount spiral that is hard to avoid. Of all the promotions for a retailer or manufacturer, only one-third end in profit. The only possible and sensible way is to moderate and manage promotional discounts based on data, only then selecting the right products to promote and efficiently setting the discount.

Main Features of
Efficient Promotions

Not every item is suitable for inclusion in a promotional event. VERITICO PRICE helps select the appropriate item for promotion. Our system automatically accounts for several key criteria at once, whether it’s sales KPIs, price elasticity, supply constraints, or the promotion’s historical effectiveness. The system then selects the optimal promotional items from each category and flags those that have significant business potential in your portfolio. These are then placed in a special place on the flyer or the website, such as the front page.

The discount amount is one of the most important criteria in terms of waste. Whether you want to maximize sales or profit, discounting too much can have a negative effect or even subsidize the event. Therefore, let VERITICO PRICE’s sophisticated algorithms set the discount, automatically generating it based on your discount optimization strategy and your competitors’ prices.

Offering the right leaflet mix of items is often the main reason a customer will visit your store. Our software can handle even this very challenging task, and from all possible flyer combinations, it will select the one that will not only be most competitive but will also bring the company the expected sales results. What must be taken into account? Representation of all key categories, seasonality, competing flyers, shopping cart cannibalization, and the expected impact on your KPIs.

Using sales analysis, our system automatically estimates how many goods a planned promotion will sell. The amount of sales is based on historical data and accounts for other factors, such as the promotion type and length, placement in the flyer, discount amount, sales channel, etc. The estimated quantity is automatically broken down into individual days, which is a key input for other departments that provide tactical and operational support for the promotion. Without this collaboration, it would not be possible to accurately supply the sales channels and ensure optimal availability for the customer.

How to properly measure the effectiveness of promotions? VERITICO PRICE allows you to evaluate the benefits of a planned promotion, monitor the progress of the current promotion, and evaluate the final evaluation of the completed promotion. The evaluation accounts for the drop in sales of other items not included in the promotion (the so-called cannibalization), as well as the drop in demand before and after the event (the so-called pre and post-promotion effect). Thus, everyone will see one truth based on the real effect of promotions. All of this is automated based on input data from billing and imported on a daily basis.

Are you overwhelmed by the complex approval hierarchy and unproductive process of managing promotions from strategy to execution? VERITICO PRICE helps you review, simplify, and redefine the entire promotions management process, define sub-activities and assign rights or responsibilities to individual departments and positions. The result is an efficient and transparent promotions management and approval process.

Pricing Management

If the price is too high, it discourages customers from buying. Too low, and the customer questions the goods’ quality. However, the factors that ultimately decide the purchase are far more complex. The customer is influenced by the company’s image, product attractiveness, social responsibility or environmental aspects, and much more.

In the pricing process, VERITICO PRICE uses the most advanced mathematical models based on an understanding of customer behavior combined with factors influencing customer demand. As a result, we can deliver results that are unique in the marketplace and allow the achievement of significant increases in turnover and profit. The system ensures all models are state of the art and any changes in pricing are supported and verified.

Retailers have three main challenges in pricing: accounting for the complexity of the assortment and multi-channel sales environment; learning to understand customer buying behavior and predicting the impact of pricing changes on the entire Supply Chain as accurately as possible.

The complexity of setting prices increases exponentially with the spread of the inventory. In a store with 10,000 products, we reach trillions of possible price combinations. Moreover, price setting is not a one-time activity. Retailers need to react quickly to turbulent market environments, whether it’s competitive dynamics, changes in customer preferences, or changes in the assortment. These can arise on the merchant side or the supplier side. For this reason, the price management environment must be as automated as possible. At the same time, it should be flexible and responsive to daily changes, with the possibility of manual adjustments as needed.

Main Features of
Pricing Management

Price management is a dynamic environment that allows you to change prices quickly, consciously, and clearly in both B2B and B2C. VERITICO PRICE allows you to manage purchase prices (how much you buy from a supplier), regular sales prices (how much you sell to a customer), and sale prices and promotional prices (how much you sell for when you get discounted terms).

The pricing and promotions apps are linked, so as soon as regular prices change, the system reacts, optimizing future promotions.

Why is it generally good to have a strategy? So that you know WHERE you are going, HOW to get there, and WHAT your PRIORITIES are. With a pricing strategy, the price supports the achievement of your business goals. This allows you to become the price leader in a given product group or follow your competitors’ pricing.

Brand positioning indicates where a product is in relation to its market competitors and how it should be perceived by the customer. This identifier is one of the pricing inputs. The price of a given product may be one of the lowest on the market (low-cost product), similar to that of a competitor (mainstream product) or very high (premium product).

How can you ensure consistency and fairness of pricing across your portfolio? Family pricing helps you transparently and systematically manage prices according to segments that behave similarly in terms of pricing. Segmentation criteria vary depending on your preferences, whether it’s product similarity (e.g. flavors in a product family), the degree of price elasticity according to shopping cart analyses, positioning within your brand, or package size.

Omnichannel pricing allows you to manage your pricing according to different strategies for different sales formats, regions, or sales channels. This ensures that your prices are more competitive and match expectations for wholesale, retail or e-commerce customers.

There are many KPIs that every retailer tracks, including profit, revenue, margin, competitor price index or sales volume. But how do you mix and prioritize your pricing strategy so it is not a lethal cocktail, but sustainable and aligned with company goals? There is nothing easier than checking the expected impact of pricing changes using what-if analysis. Then use the optimal one based on the results.

Markdown Management

Excess stock, expiring stock, delisting or seasonal sale? These are exactly the reasons VERITICO PRICE uses a “sale” pricing strategy. This can take many forms, such as maintaining the normal price, continuing the promotional price or setting a reduced price according to a selected KPI (margin, sales, etc.).

Our system automatically evaluates the best course of action daily. It is up to the user to agree or modify the repricing proposals, which are promptly written as new normal selling prices. Price changes can be individually addressed and applied to individual stores or a specific group of customers (e.g., wholesale customers, loyalty card customers, etc.), or they can be valid until a certain date or until stock is gone.

Once the new sale prices are in effect, the evaluation process can begin, analyzing whether the sales target was met, or whether prices need to be reduced to achieve the target and further boost sales.

Main Features of
Markdown Management

Do you need to systematically restock products that are coming out of season (in-outs) or will be delisted from your portfolio? Our system advises when and which products to put on sale so you don’t overstock your store after the end of the sale. The product is restocked with minimal loss.

In an effort to avoid drastic last-minute price cuts or large write-downs on fresh assortments, VERITICO PRICE will propose a plan to work with the revaluation of your selected assortment over time. Markdowns can be for different reasons: overstocking of goods after a promotion or overstocking due to reduced demand as a result of cannibalization. With our solution, your depreciation will be minimal.

Contact