How Machine Learning is reshaping Price Optimization Tryolabs Blog

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Setting the right price for a good or service is an old problem in economic theory. There are a vast amount of pricing strategies that depend on the objective sought. One company may seek to maximize profitability on each unit sold or on the overall market share, while another company needs to access a new market or to protect an existing one. In this blog post, we'll present the problem of price optimization for retail – which has its own particularities – and how retailers can take advantage of the tremendous power of Machine Learning (ML) technology to build effective solutions. Given that in these days it is very easy for a customer to compare prices thanks to online catalogs, specialized search tools or collaborative platforms, retailers must pay close attention to several parameters when setting prices.