CONCERNS ABOUT PRICE OPTIMIZATION

There's growing interest in price optimization, as was highlighted in SN's "A Break for Price Op?" June 21, 2004, Page 49. That brings with it a question: Will price optimization produce short-term revenue gains, but also unintentionally contribute to loss of sales over time?ers, that price increases are slowing sales. As margin pressures push retailers to raise prices and more companies use price

There's growing interest in price optimization, as was highlighted in SN's "A Break for Price Op?" June 21, 2004, Page 49. That brings with it a question: Will price optimization produce short-term revenue gains, but also unintentionally contribute to loss of sales over time?

ers, that price increases are slowing sales. As margin pressures push retailers to raise prices and more companies use price optimization, it will be critical that operators not simply maintain, but actually strengthen, their price image. This can be done, but it isn't automatic.

Bill Bishop

president

Willard Bishop Consulting

Barrington, Ill.