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The Problem: Outdated Pricing Methods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.
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.
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