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The Dangers of Retail Pricing Software

I once asked a contractor about those Central Vacs that have some houses have, and he shrugged and said “I’ve ripped just as many out as I’ve installed.”  We’ve seen just as many retailers pull out their retail pricing optimization software as they’ve installed, because you get outcomes like the below:

old spice

 (photo credit: Reddit)

The central flaw is that this software rarely properly reflects that SKUs live in assortments that have to stay in relative order, or in this case, equivalized order.  And so you get situations like this, which offers consumers a negative discount for buying a multi-pack!

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