ADPS automatically calculates optimal price points across all of a retailer’s products

The Automated Dynamic Pricing System automatically calculates optimal price points for a retailer based on price rules, and product specific data such as price elasticity, purchase price and inventory levels. ADPS contains very advanced algorithms that automatically calculate the price elasticity of categories and products.





ADPS brings realism back into pricing. For example, in certain markets (such as televisions) our data shows that even though televisions are a very price elastic category, the average market price is far below its optimal level in many markets. This is caused by retailers continuously reacting that each other’s price points, without keeping a sharp eye on the true margin (including all conditions) and price elasticity. That means that in this case, increasing prices will lead to boosting total profit. We have also come across several cases where there was still a large opportunity to increase both sales and total profit by decreasing price.