The pricing game can be brutal for retailers and consumers alike. Retailers must anticipate the general market demand and pricing in an attempt to maximize their revenue over the life cycle of a product. Consumers must evaluate their own willingness to pay for an item based on unique factors that vary from shopper to shopper. Therefore, the standard retail pricing model introduces the product at a given list price which is then reduced over time to move inventory, as the product nears the end of its lifecycle. However, the extent of forecast accuracy will greatly impact average IMU (initial markup) or total profit that a retailer generates, as well as the average price we pay as consumers.
Nyopoly is a retailer that offers a different approach that they have coined as “Customer Engaged Pricing.” Nyopoly’s platform enables their shoppers to name their own price for current season products. In what they describe as the “fun of the flea market with the brands of your favorite department store,” their solution looks to meet the needs of the individual consumer without the brand or retailer having to take inventory wide markdowns.
Shoppers walk away satisified that they have made a product purchase for a price that reflects their ultimate and unique willingness to pay. Brands and retailers earn loyalty through satisified customers and reap the benefits of a price strategy that is optimized at an individual consumer level. Furthermore, the data that is captured by the Nyopoloy tech platform provides analytics and insights that can support more accurate forecasting and decision making for future products. Everyone can walk away a winner in this innovative auction experience.
Going once, going twice, and SOLD to any reasonable bid!
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