Published: 16 May 2001
Analyst(s): Peter Abell
Several large retailers are piloting DemandTec's price optimization service, and the results have shown net profit increases between 90 and 180%. DemandTec, a start-up backed by $16M in venture funding, has other Food and Drug retailers in its pipeline. The service makes it easy to use complex math--Bayesian inference and non-linear optimization--to set optimal prices with less than perfect data, even at store-level.
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