Smart Pricing for Profits

Discussion
Mar 28, 2003
George Anderson

By George Anderson


So-called smart pricing systems promise retailers greater inventory control
and higher profits, according to BusinessWeek.


Web-based systems from companies such as SAP, DemandTec and ProfitLogic can
provide foods retailers with the information “to pinpoint the best time to start
discounting corn on the cob, region by region.”


These types of systems combined with electronic shelf tags and smart cart technology
may eventually give retailers the ability “to change prices in the blink of
an eye — and send electronic messages to shoppers’ carts for custom-made deals.”


Moderator’s Comment: What are your thoughts on smart
pricing technology?


Smart pricing systems offer retailers better information
to make better pricing decisions. This should enable retailers to better serve
the needs of individuals consumers.


It could also cause a backlash if consumers see it as
a retailer or manufacturer’s way to drive up profit margins. Just ask Douglas
Ivestor. [George
Anderson – Moderator
]

Please practice The RetailWire Golden Rule when submitting your comments.

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