CatMan 2.0 FAQs

What impact does pricing have?

Pricing is such an important, but complex, tactic in category management because changes can have huge implications on sales and profit.

As we continue to expand understanding of how varied the response to price changes is, we can begin to understand the variables such as online shopping, price transparency, Shopper expectations, and value perception.

Is pricing still an important tactic?

Pricing is a basic need for Shoppers when determining their store choice (according to Nielsen’s Store Choice Driver’s research).

A 1% increase in price can result in +11% increase in operating profit (HBR study).

Changes in the retail landscape - mostly omni-channel and e-commerce - have led the need for retailers make changes in their approach to pricing.

What Pricing Analytics apply?

It’s important to understand how different pricing analytics work and what their outputs are. Some of the most common & traditional approaches include:

  • Linear Regression
  • Price Elasticity
  • Price Gap
  • Breakeven

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