Automated product pricing engages customers and retains profits margins for retailers

In Cyprus, Ermes has partnered with IBM to determine through the AI ​​the cost of putting items on sale while still maintaining sufficient margin.

IBM AI technology has been used to power incredibly wide ranging innovations from this virtual marketing advisor that uses natural language, to this legal research assistant. Now, Ermes Group, has partnered with IBM to automatically calculate the lowest possible prices that still maintain a margin for the company.

Ermes, the largest retailer in Cyprus, had previously calculated this price manually for each item and store. The company is now using Watson to fix the optimal price. The retail giant can now automatically determine whether a specific item in a given showcase needs to be updated to move stagnant sales. IBM also provides recommended prices along with a schedule that recommends the dates on which items should be discounted. Ermes will know both when to act and what price drop will allow the company to keep a margin of profit for each item in stock. As such, the company’s merchandising team can easily and quickly determine which products are behind in sales and what steps to take to move the items.

Where will Watson go next?