Gartner Research

DemandTec Debuts Its Price Optimization Service

Published: 16 May 2001

ID: G00189632

Analyst(s): Peter Abell

Summary

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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