How companies use AI to set prices

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 92%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

The cost of your Starbucks order may have been modelled by AI

Save time by listening to our audio articles as you multitaskA seminal study from 2010 by McKinsey, a consultancy, estimated that raising prices by 1% without losing sales can boost operating profits by 8.7%, on average. Getting this right can be tricky. Set prices too high and you risk losing customers; set them too low and you leave money on the table. Retailers have historically used rules of thumb, such as adding a fixed margin on top of costs or matching what competitors charge.

These systems are becoming cleverer thanks to advances in artificial intelligence . Whereas older models used historical sales data to estimate price elasticities for individual items, the latest crop of-powered ones can spot patterns and relationships between multiple items. Makers of pricing software are incorporating new data sources into their models, from customers’ tweets to online product reviews, says Doug Fuehne of Pricefx, one such firm.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.

Vont þegar fjölmiðlamenn skrifa, og við ákveðum að hlýða. Þá eru fjölmiðlamenn valdhafar.

We don't buy bitcoin We earn bitcoin From Mining I'm ready to show 10 lucky people how to earn 0.1BTC ($4,000) and more daily! No referral No withdrawal fees If interested, kindly send a DM

Price optimization. Pretty fancy way to say profiteering.

It really's solution ? Maybe !

5 reasons why Prices are going up and 10 things will be more expensive till the end of 2022

Ukraine war Bayraktar song Filmed each one they destroyed from every possible angle and in different places. We still have the music:

Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 6. in SE

Sverige Senaste nytt, Sverige Rubriker