Price optimization involves predicting how customers will respond to price changes and finding the optimal price to maximize profits. Any change to the price can bring measurable impacts to sales. For example, lowering the price may bring more customers to your store, but you may make fewer profits. On the other side, making the price higher can bring fewer customers in but you might make more on profit. As a result, this makes pricing a balancing process. In fact, just a 1% improvement can produce an 11.1% profit. If you are interested in learning how to begin the price optimization process, check out the resource below.
Infographic created by Clover Network, a retail POS provider