Prezzu is a software solution that delivers predictive pricing for online retailers – Pure player or not.
Prezzu automatically adjusts prices on catalogs of hundreds of thousands of items, day after day. Prezzu goes beyond business rules by using predictive algorithms to generate prices maximizing turnover under margin constraints. Prezzu responds optimally to competition prices, cross effects among same-range products, the incidence of promotions and markdowns, and can generate optimal prices as a function of inventories.
Prezzu can be automated in a Windows or Linux environment.
They use Prezzu
Prezzu enabled us to be proactive in our pricing. We understand the impact of our promotions and are now able to optimize them.
Pierre-Noël Luiggi, Fondateur et Président, Oscaro.com
Prezzu delivers 20 extra points of growth while maintaining our margins
Geoffroy Malaterre, Fondateur et Président, Spareka.com
Automate price optimization and business rules in a robust data-based technology
Your sales data is a gold mine
Your historical sales data are a mine of information to anticipate the response of sales to a change in prices. Use them and improve your pricing performance.
Who is Prezzu for?
Prezzu was designed for on-line retailers wishing to automate their pricing on the basis of a robust predictive solution. Prezzu is also for off-line retailers wishing to make the most of their data and emulate the technological innovations of e-commerce.
Set optimized prices
The reaction of quantities to a price change, combined with unit costs, determines the optimal prices that maximize the margin volume or sales. It also cab be used to move inventory at the best conditions within a set target date.
Measure the impact of promotions
Prezzu assesses the impact of price markdowns (flash sale, special offers, etc.) and isolates the pure promotion effect from the impact of the price markdown itself.
You need Prezzu if …
- You wish to automate pricing based on a robust predictive system.
- You wish to maximize turnover under a global margin rate constraint.
- You wish to move your inventory within target dates, item by item.
- You wish to combine price optimization with business rules and the use of “magic” prices.
- You do not take into account cannibalization within your product range.
- You do not measure the impact of your promotions and price markdowns.
- Your pricing strategy boils down to following your competitors’ prices.
Robust price elasticities
Prezzu delivers robust price elasticities. Prezzu corrects the endogeneity of quantities with respect to prices and thus isolates the pure effect of prices on quantities – the only one that matters in applied pricing. Prezzu computes product-by-product price elasticities, but also produces aggregate price elasticities at the category level – how the total quantity sold in a category responds to a simultaneous variation of all prices in that category. The aggregate price elasticity accounts for the cross effects among products in the category and therefore captures the total net effect of price changes.
Take into account product cannibalization
Product cannibalization – and how to minimize its negative impact – is built-in into Prezzu’s statistical engine. Lowering the price of a given product will impact the sales of substitutable products in your range. Only a quantified approach to pricing can provide the joint set of prices that accounts for these cross-product effects.
Proactive pricing strategy against competitors
Aligning your prices with your competitors’ is not always the best strategy. Specific range breadth, the perceived quality of your service, your brand or your market share make your prices unique. Prezzu allows you to abandon vulnerable and ineffective traditional pricing methods as “cost plus” or “follow the leader” to use a proactive pricing that uses all the rich insight that can be extracted from a robust data-based approach.
Combine price optimization with business rules and “magic’ prices
Price optimization in Prezzu can be combined with business rules such as alignment on a sub-set of competitors, complex price bounds (with respect to current prices, unit costs, etc.) and sophisticated rounding rules to generate “magic” prices (for instance 34,08 € -> 33,90 € or 20,34 € -> 19,99 €).
Integration and automation
Because Prezzu is based on systematic data analysis, it can be automated into your IT systems. Our experts can help you integrate Prezzu’s data flow and generate outputs at the requested frequency. Prezzu is typically used by our clients to optimize and update prices on a daily basis.