Pricing Strategy for a Push-Based Supply Chain Model

Pricing Strategy for a Push-Based Supply Chain Model

Pricing Strategy for a Push-Based Supply Chain Model

Retailer D operates multiple chain stores focused on Muslimah fashion in Malaysia. Its business model is a push-based supply chain, therefore it has little control over designs and intake volume. The retailer, however, holds the responsibility of setting its own pricing architecture. 

The Problem: Outdated Pricing Methods

Prior to using Omnilytics, the retailer exercised the standard pricing strategy – the markup method. While simple and easy-to-understand, the markup method doesn’t optimise pricing in today’s challenging retail environment. 

The Solution: Adopting ‘Good-Better-Best’ Strategy 

To craft an effective pricing strategy, the retailer utilised Omnilytics Pricing Analysis to study competitors’ prices. 

The pricing architecture of Muslimah categories

Not long after, the Muslimah retailer managed to develop a good-better-best pricing architecture, which is one of the industry’s best practices to guide consistent price setting.

Regardless of the types of products ‘pushed’, Retailer D has simultaneously attracted both new high-spending customers and price-conscious ones, dramatically boosting revenue and profits.

Copy link
Powered by Social Snap