How can ideal discounts for each product lead to a 50% increase in profit margin and more?

How can ideal discounts for each product lead to a 50% increase in profit margin and more?

Success Story

How can ideal discounts for each product lead to a 50% increase in profit margin and more?

How can ideal discounts for each product lead to a 50% increase in profit margin and more?

January 30, 2024

January 30, 2024

Important KPIs:

The pricing and promotion team has reached out to Differs because they need a deeper understanding of customer price sensitivity for their extensive range of products.

Currently, they operate blindly for most items, relying solely on competitor pricing.

As a result, they struggle to determine the most appropriate discounts for each item. This makes it challenging to maximize profit margins for their core products or reduce excess inventory for outdated seasons without sacrificing too much profit.

Existing competitive price monitoring tools are unable to identify trends that could assist teams in managing their product catalog effectively.

Hence, the pricing teams cannot find the right discount for each item, either to maximize the overall profit margin or to efficiently reduce inventory.


We have proposed our solution, "Smart Sale Prices," to our client. This solution empowers price managers to set the perfect discount for each item, tailoring sale prices to match purchasing behavior in various scenarios:

  • How can we increase profit margin while selling fewer items from the permanent collection?

  • How can we reduce excess inventory without compromising the profit margin for current season items?

  • How can we reduce excess inventory and boost revenue for old-season products?


Deliverables include:

  • Weekly updates of the optimal discount for each item, tailored to the specific scenario.

  • Projection of future discount-elasticity curves to improve the understanding of customer behavior in the upcoming weeks.

  • Interactive user interface (UI) for precise configuration of business constraints and objectives.

Target Market: Europe

Implementation Time: 2 weeks for creating a custom data ingestion pipeline, training a custom model, and delivering results in the client-specific format.

Important KPIs:

The pricing and promotion team has reached out to Differs because they need a deeper understanding of customer price sensitivity for their extensive range of products.

Currently, they operate blindly for most items, relying solely on competitor pricing.

As a result, they struggle to determine the most appropriate discounts for each item. This makes it challenging to maximize profit margins for their core products or reduce excess inventory for outdated seasons without sacrificing too much profit.

Existing competitive price monitoring tools are unable to identify trends that could assist teams in managing their product catalog effectively.

Hence, the pricing teams cannot find the right discount for each item, either to maximize the overall profit margin or to efficiently reduce inventory.


We have proposed our solution, "Smart Sale Prices," to our client. This solution empowers price managers to set the perfect discount for each item, tailoring sale prices to match purchasing behavior in various scenarios:

  • How can we increase profit margin while selling fewer items from the permanent collection?

  • How can we reduce excess inventory without compromising the profit margin for current season items?

  • How can we reduce excess inventory and boost revenue for old-season products?


Deliverables include:

  • Weekly updates of the optimal discount for each item, tailored to the specific scenario.

  • Projection of future discount-elasticity curves to improve the understanding of customer behavior in the upcoming weeks.

  • Interactive user interface (UI) for precise configuration of business constraints and objectives.

Target Market: Europe

Implementation Time: 2 weeks for creating a custom data ingestion pipeline, training a custom model, and delivering results in the client-specific format.