Pricing Improvements for an Online Wine Retailer

Background

A leading national online wine retailer was seeking to improve its competitive edge using pricing strategies in a highly dynamic online selling environment. Historically, they used a cost-plus pricing model, yet the retailer was interested in alternatives that would increase website traffic, improve profit margins, and enhance customer perception of value.

Secretariat developed a dynamic pricing model from a carefully designed regional experimentation to determine optimal pricing strategies for each bottle and geography.

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