myEDITED: How Are Products For Price Adjustment Opportunities Identified?

To determine what Opportunity a product falls into, we first assign every product a trend classification. 

• Trend classification is determined based on performance factors gathered from the products (e.g. newness, discounting, replenishments) to identify it as either a top mover, struggling or clearance. 
  • Top mover: Product is less than 120 days old, has had price increases, a sell-out event, and/or restock. 
  • Struggling:  Product is more than 120 days old, discount is greater than the first discount. 
  • Clearance: Product is more than 120 days old, has had a sell-out event with no restock and/or discount greater than first discount.
  • Core performer: Product is more than 120 days old with no sign of being on clearance.
  • Neutral: Product is less than 120 days old and neither a top mover nor struggling.
    
    

For the increase/decrease Opportunities, we look across your assortment and your key competitors’ assortments to understand where you have similar products. Depending on their trend classification and whether your products are priced higher or lower than your competitors, we recommend product candidates for a price adjustment.

• Pricing increase products: Products that have a high trend classification but are priced lower than your competitors
• Price decrease products: Products that have a low trend classification but are priced higher than your competitors

To help determine where product groups should sit, we plot them on a uniqueness-performance graph.  

Decrease: Products to consider for a price decrease to drive revenue and clear inventory.

Increase: Products to consider for a price increase to drive profit.