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MS-151 Good-Better-Best Product Pricing v05

[Market Simulation] MS-151 Good-Better-Best Product Pricing
Market Simulation (MS-151) - Good-Better-Best Product PricingSimultaneously setting Prices for multiple Products is complicated by same-store cannibalization. This workflow shows how to set Prices for the 'Good'Product, the 'Better' Product, and the 'Best' Product that maximize totalProfitability for the store. Define Good / Better / Best Products Method 1: Maximize Profits with Trial-and-ErrorIterate through a list of test prices to find thecombination that results in greatest profitability. Method 2: Use 'Price Maximize' nodeThe Market Simulation 'Price Maximize' node canbe configured to simultaneously change thePrices of all the Products in the same Store tomaximize Profit, Revenue, or Quantity Sold. Method 1 (using Trial-and-Error)can raise Profitability from thestarting point of $105,637 to$159,617 (a lift of more than50%). Method 2 (using the 'Price Maximize' node) canfurther raise Profitability to $172,482 (a total lift ofmore than 60%). It quickly becomes very difficultto further raise profitability using the Trial-and-Error method as the same-store cannibalizationbetween the products is too complex to manuallyestimate.StandardProduct FeatureGood Better BestProduct VariationsProductVertical DifferentiationProductHorizontal DifferentiationGood Better BestWTP MatrixSet 3 x Product PricesMaximize Store ProfitDefineProductsDefineStoreSet InitialPriceAdd PriceColumnTrial-and-ErrorPricesSelect NextTrial-and-ErrorPrice RowRotate Price Rowto Price ColumnSet PriceHeaderAdd PriceColumnPredictQuantityRevenueProfitTrack PricesGood, Better, BestSumQuantityRevenueProfitTrack Prices vsQuantityRevenueProfitSelect NextTrial-and-ErrorPrice RowSort byMaximum ProfitSumQuantityRevenueProfitMyStoreIncluded ProductsMyStoreIncluded ProductsRound PricesTwo-Decimal-Places Table Creator Table Creator DifferentiationVertical DifferentiationHorizontal MatrixDistributions Price Maximize Column Rename ConstantValue Column Table Creator Joiner Table Creator Chunk Loop Start Transpose Column Rename(Regex) Joiner Simulate Market GroupBy GroupBy Cross Joiner Loop End Sorter GroupBy Row Filter Row Filter Round Double Market Simulation (MS-151) - Good-Better-Best Product PricingSimultaneously setting Prices for multiple Products is complicated by same-store cannibalization. This workflow shows how to set Prices for the 'Good'Product, the 'Better' Product, and the 'Best' Product that maximize totalProfitability for the store. Define Good / Better / Best Products Method 1: Maximize Profits with Trial-and-ErrorIterate through a list of test prices to find thecombination that results in greatest profitability. Method 2: Use 'Price Maximize' nodeThe Market Simulation 'Price Maximize' node canbe configured to simultaneously change thePrices of all the Products in the same Store tomaximize Profit, Revenue, or Quantity Sold. Method 1 (using Trial-and-Error)can raise Profitability from thestarting point of $105,637 to$159,617 (a lift of more than50%). Method 2 (using the 'Price Maximize' node) canfurther raise Profitability to $172,482 (a total lift ofmore than 60%). It quickly becomes very difficultto further raise profitability using the Trial-and-Error method as the same-store cannibalizationbetween the products is too complex to manuallyestimate.StandardProduct FeatureGood Better BestProduct VariationsProductVertical DifferentiationProductHorizontal DifferentiationGood Better BestWTP MatrixSet 3 x Product PricesMaximize Store ProfitDefineProductsDefineStoreSet InitialPriceAdd PriceColumnTrial-and-ErrorPricesSelect NextTrial-and-ErrorPrice RowRotate Price Rowto Price ColumnSet PriceHeaderAdd PriceColumnPredictQuantityRevenueProfitTrack PricesGood, Better, BestSumQuantityRevenueProfitTrack Prices vsQuantityRevenueProfitSelect NextTrial-and-ErrorPrice RowSort byMaximum ProfitSumQuantityRevenueProfitMyStoreIncluded ProductsMyStoreIncluded ProductsRound PricesTwo-Decimal-PlacesTable Creator Table Creator DifferentiationVertical DifferentiationHorizontal MatrixDistributions Price Maximize Column Rename ConstantValue Column Table Creator Joiner Table Creator Chunk Loop Start Transpose Column Rename(Regex) Joiner Simulate Market GroupBy GroupBy Cross Joiner Loop End Sorter GroupBy Row Filter Row Filter Round Double

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Created by: Berlin
Created at: 2018-09-10
On NodePit since: 2021-02-05
Last update: 2024-04-18
Created with KNIME version: v4.3.0

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