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September 1, 2025
Pricing and profitability optimization
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A leading spare parts company, with a 70% market share and over 10,000 SKUs, sought to improve overall profitability through pricing optimization and sales prediction.
The Challenge
The company faced the complexity of managing a broad product portfolio across multiple points of sale. The challenge was to strategically adjust prices to maximize profitability without losing competitiveness, while relying on reliable demand forecasts to guide commercial decisions.
Specific Objectives
- Optimize overall profitability through a dynamic, market-adapted pricing model.
- Predict demand with high accuracy by SKU and point of sale to anticipate commercial decisions.
- Streamline and professionalize pricing processes using advanced algorithms and analytics.
- Maintain market competitiveness by balancing price, sales volume, and profitability.
Phases
Phase #1
Sales forecasting
Model with 85% accuracy, projecting weekly sales by SKU and point of sale.
Phase #2
Profit maximization
Optimization algorithm generating price lists adjusted to real market conditions.
Results
Initiative 1
Significantly improved profitability, with a direct impact on financial management.
Initiative 2
Record-breaking performance achieved in October, marking a milestone for the company.
Initiative 3
More agile pricing processes supported by advanced analytics.
Conclusion
This project demonstrates how cutting-edge technology and high-accuracy predictive models can transform data into measurable results, establishing the company as a benchmark in pricing and profitability management within its industry.
