Do I need to discount?
One the most common challenges in retail business is to establish an optimal pricing strategy. Applying discounts in favour of gaining revenue is a tricky act of balance. You have to consider many factors in order to find the right price. This is a lengthy and expensive task. The traditional approach is less responsive to evolving market conditions. Besides, they require frequent updates to maintain its accuracy.
How will my competition react?
Pricing isn’t static because it is strongly influenced by what your competitors do. Modelling competition requires large amounts of data and frequent validation. Keeping track of what competitors do is a costly and difficult operation.