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Kiran Gange founded RapidPricer and is currently working on automated pricing and promotions for retailers using image processing, spectral images, IOT data and artificial Intelligence.
In this episode, Kiran shares a dynamic pricing strategy for retailers that increases profits while providing greater value to customers.
What you will learn from this episode:
"Take a look at your data to understand how customers are reacting to price changes."
- Kiran Gange
Topics Covered:
01:16 - What inspired him to write the book 'The Expert Guide to Retail Pricing'
02:55 - The reason for suboptimal pricing in most retail companies he works with
06:13 - Pricing in B2B versus B2C as it relates to value associated with the product or service
07:51 - Explaining about the lagged reaction between the value and the price of the product
09:22 - Illustrating the work they do at RapidPricer when it comes to dynamic pricing
13:16 - What helps customers in their decision when choosing stores to buy from
15:05 - Frameworks used and discussed in Kiran's book
16:16 - Identifying products that are profit drivers or traffic drivers
17:45 - Determining individual product elasticity even without changing prices [plus a discussion on category and product elasticity]
20:30 - Seeing opportunities for retailers to do dynamic pricing [Costco having a brilliant customer level analysis]
22:30 - What is the ‘minimum margin rule’
23:26 - How does pricing improve value
24:58 - Kiran’s best pricing advice
Key Takeaways:
"There's so much more value to be achieved in actually selling the product at a lower price than to take this incremental profit and to lose the trust of the customer, which is much more important than your profit in the long run." - Kiran Gange
"It was Jeff Bezos who once said that our elasticity numbers always show that people are inelastic, but that's not true in the long run. You don't want to take prices up and lose the customer's trust. You might as well use a system to build trust while reducing the wastage and increasing the customer satisfaction." - Kiran Gange
"It's not about what the customer is going to see while he is already inside the store, but giving them a fair value where it matters." - Kiran Gange
People/Resources Mentioned:
Connect with Kiran Gange:
Connect with Mark Stiving:
4.8
5050 ratings
Kiran Gange founded RapidPricer and is currently working on automated pricing and promotions for retailers using image processing, spectral images, IOT data and artificial Intelligence.
In this episode, Kiran shares a dynamic pricing strategy for retailers that increases profits while providing greater value to customers.
What you will learn from this episode:
"Take a look at your data to understand how customers are reacting to price changes."
- Kiran Gange
Topics Covered:
01:16 - What inspired him to write the book 'The Expert Guide to Retail Pricing'
02:55 - The reason for suboptimal pricing in most retail companies he works with
06:13 - Pricing in B2B versus B2C as it relates to value associated with the product or service
07:51 - Explaining about the lagged reaction between the value and the price of the product
09:22 - Illustrating the work they do at RapidPricer when it comes to dynamic pricing
13:16 - What helps customers in their decision when choosing stores to buy from
15:05 - Frameworks used and discussed in Kiran's book
16:16 - Identifying products that are profit drivers or traffic drivers
17:45 - Determining individual product elasticity even without changing prices [plus a discussion on category and product elasticity]
20:30 - Seeing opportunities for retailers to do dynamic pricing [Costco having a brilliant customer level analysis]
22:30 - What is the ‘minimum margin rule’
23:26 - How does pricing improve value
24:58 - Kiran’s best pricing advice
Key Takeaways:
"There's so much more value to be achieved in actually selling the product at a lower price than to take this incremental profit and to lose the trust of the customer, which is much more important than your profit in the long run." - Kiran Gange
"It was Jeff Bezos who once said that our elasticity numbers always show that people are inelastic, but that's not true in the long run. You don't want to take prices up and lose the customer's trust. You might as well use a system to build trust while reducing the wastage and increasing the customer satisfaction." - Kiran Gange
"It's not about what the customer is going to see while he is already inside the store, but giving them a fair value where it matters." - Kiran Gange
People/Resources Mentioned:
Connect with Kiran Gange:
Connect with Mark Stiving:
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