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Optivo Pricing Solution Drives Profitability for Online Channels |
| Optivo Corporation announced the Optivo Pricing Solution,
a price optimization application for retailers that leverages the
Internet to maximize profits in online channels.
The Optivo Pricing Solution features a "live testing" capability, which uses the power of the Internet to test different price-points, and to measure and respond to changes in market demand in real-time. Based on these actions, the Optivo Pricing Solution recommends an optimal price for each product based on an online merchant's business objectives. These recommendations can be manually approved and implemented, or automatically put into place by the Optivo application through tight integration with a retailer's online infrastructure. In recent tests, the Optivo Pricing Solution has demonstrated immediate gross margin increases of 20 to 40 percent. Recently, several respected research and consulting institutions, such as Andersen Consulting and McKinsey & Company, have reached a similar conclusion: incremental shifts in pricing can lead to substantial increases in profit. Andersen Consulting found that, "on average, a 1 percent increase in price, without a corresponding drop in volume, can lead to operating profit improvements of 11 percent or greater." McKinsey & Company concluded that, "getting pricing right has emerged as one of the ultimate keys to the success of e-businesses, but few companies have even begun to explore the opportunities." The Optivo Pricing Solution was designed to address the different phases of a product's lifecycle, from setting a product's original price to determining its optimal prices during an inventory liquidation period. A review of the Optivo solution is included in the 2001-4 eRetail Report from eRetailNews. Source:Optivo 04/30/01 Other stories All the News | Strategy | Marketing | Technology | Profiles | Industry |
Updated: 17 Feb 2006 .
