SYMSON helps you to optimize pricing and demand forecasting with machine learning

SYMSON Pricing helps to optimize your pricing with the help of smart algorithms. The tool gives you advice on how you can improve your margin per product or per customer. The big advantage is that you can implement different pricing strategies per product so well suited if you want to experiment with different prices or if you want to automate predefined strategies.

SYMSON AI Data-driven Software

Form has been submitted

We automate and support pricing optimization and demand forecasting processes. Our platform enables you to understand AI decisions and thereby improve your gross margin.

  • Automate labour-intensive routine tasks for huge time savings.
  • Valuable insights into customer behavior such as price sensitivity and seasonality.
Trusted by these data driven companies

Key-Value Item pricing model

Definition Key-Value Item pricing model

A key-value item (KVI) pricing model is a pricing model for a product with a high price elasticity which is sold relatively often. In other words, it is a high-selling product whose price is very important to buyers. For supermarkets, this could be cheese, for example. This product is sold often and almost every supermarket has it. Also you may have noticed that the price of cheese in many supermarkets is almost the same. If this were not the case, people would probably go to the supermarket with the lowest price for cheese.

Key value items are products that are very important to the customer and persuade to come people to a certain store over another. But how can store generate profit when they sell products for a relatively low price?

Generate Profit with Key-Value Item pricing model

With a key value item pricing model you can easily generate extra profits. If you can identify your key-value items in your range of products, you can price them competitively to get as many people as possible to your store or webshop. You will not make a lot of profit on this product, but with extra sales of products that are not price sensitive you can generate very good profit margins!

If a supermarket offers its cheese 10% cheaper than all other supermarkets, people will go to this supermarket more often than other supermarkets. It is likely that in addition to cheese, people will also want to buy bread, for example. They will then do this faster in the supermarket with the cheap cheese, because they will already want to go there. In this case you could raise the price of bread, so that you will have a better margin on this product. This will result in higher profit overall!

Advantages and disadvantages

Advantages:

  • Generating more profit
  • A better customer perception compared to competitors due to a lower price for key-value items
  • A higher margin on products that are not price sensitive

Cons:

  • Takes time to find out what the key-value items are
  • Little margin on key-value items
  • Having a relatively high stock of the key-value items

Conclusion

The key-value item model is the perfect pricing model for sellers who have products in their assortment that are often bought by people. By discounting these and increasing prices on other products in your store, you can expect a good return on investment.

SYMSON can help you determine these key-value items and non-price-sensitive items using AI and algorithms. The sales department can often also be of great added value in this. SYMSON can then match the KVIs to the best non-price sensitive items for optimal profit. Do you want to know more about this strategy? Read it in detail in this blog post.

This image has an empty alt attribute; its file name is Picture1.png
[cta_testimonials]

Download one of our white papers

Stay informed of the latest developments in the demand forecasting and demand planning market and download our white papers. Our white papers provide a diligent overview full of strategies and insights to optimize your pricing and demand forecasting

How do I choose the right pricing solution?

What you can learn in this whitepaper

  • Three different solutions to improve your pricing

  • 8 key features that make your pricing software scale

Form has been submitted

The AI platform for customer insights

We automate and support pricing and demand forecasting processes. Our features enable you to understand the AI- decisions and increase your yield.

Enlarge Image

Why SYMSON?

A summary of reasons and benefits

  • Automate labour-intensive routine tasks for enormous time savings.

  • Be fully in control of the dynamic customer demand.

  • Valuable insights into customer behaviour such as price sensitivity and seasonality.

  • Introduce machine-learning to your pricing and demand forecasting.