How Retail and Analytics-Based Pricing Works with Kiran Gange

Kiran Gange is the CEO and Founder of RapidPricer, a company that helps automate pricing and promotions for retailers. He helps companies grow internationally, especially into India. And he was a Senior Strategy Analyst at Fry's Electronics. In this episode, Kiran educates us on retail and analytics-based pricing as he shares hypotheses and strategies you can practice in pricing your own products.   Why you have to check out today's podcast: Learn how to price retail products both in B2B and B2C setting Understand why you should increase your price in phases and not shock your customer at once Find out how important analytics-based pricing in, and discover strategies on how you can actually do it in your business   "Look at your past data. Use your intuition to guide the data analysis, but don't only base your decision on intuition."  – Kiran Gange   Topics Covered: 01:31 – How Kiran got into pricing 02:36 – Pricing in both the environments of B2B and B2C in retail 05:07 – A hypothesis to test for foot traffic and cameras 07:13 – Talking about the work that RapidPricer does 11:15 – The strategy on how to rapidly change prices, and the difference between base price and promoted price 14:00 – The difference between AI and a strategically thought-out programming 17:06 – Discussion around analytics-based pricing frameworks, and Mark's 'which one' and 'will I' concept 21:01 – Using AI to know which products people are price sensitive on 22:09 – Pricing table topics: "Execute price increases in phases; test the outcomes." 24:08 – Kiran's pricing advice   Key Takeaways: "There's a difference between a base price and a promoted price. The base price is when you decide what is the right price to keep inside your store for a longer time. A promotion is an instant decision, typically to correct something which is a negative factor." – Kiran Gange "Customers don't like prices changing up on them instantly." – Kiran Gange "Strategy is always the foundation behind how the prices should be done. It shouldn't be an entirely "I have no clue what's happening. Here's the price. Here you go. Cancel the black box." Ever. I believe, at least retailers are so traditional; they won't accept a solution like that." – Kiran Gange "You need to know which products are people sensitive about and make sure they get the best value on those products to compete on those products. And the others can be your profit drivers." – Kiran Gange "Whenever you have this cost increases, have like a strategy to understand which products are going to absorb the cost over time and which products can take it immediately. That will help you both stay up to date with your latest cost and not upset your customers too much." – Kiran Gange   People / Resources Mentioned: RapidPricer: https://www.rapidpricer.com/ Fry's Electronics: https://www.youtube.com/fryselectronics DemandTec: https://www.demandtec.com/ Amazon: https://www.amazon.com/   Connect with Kiran Gange: LinkedIn: https://www.linkedin.com/in/kirangange/   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mailto:[email protected]