Strategic Marketing Sciences

Analytically-Driven Consumer Strategies
Base Price Optimization
base-price-optimization

SMS’s price optimization recommendations are based on mathematical algorithms that analyze a number of factors:price-optimization.jpg

  • The product’s price elasticity
  • The product’s cost structure
  • Competitive cross price elasticity
  • The product’s current volume
  • The product’s predicted future volume based on calculated price sensitivity


However, an optimum price for a product is dynamic and likely to change based on factors such as inflation rate, competitive response, advertising and changes in channel strategy. When developing an optimum pricing strategy, SMS carefully considers likely changes in market & competitive dynamics.