The Optimal Discount Calculator is a powerful tool for practical work. We see two types of its use:
1.Local COD application
Our site can be used for a one-time adjustment of the Discount System used by you, as well as for researching the influence of the key strategic parameters of your business (off the sell price and base price of the product, applied discounts, real and potentially achievable market share, etc.) on its final result : the amount of profit margin or revenue. Naturally, our site can also be used for educational purposes to introduce the basic ideas of price discrimination.
2.COD implementation into the Dynamic Pricing System of your business.
Possibility to automate the optimization process of the Discount System creates the prerequisites for developing an automated Dynamic Pricing System (DPS). DPS is usually understood as such pricing practices when the current prices (or the Discount System) are promptly adjusted depending on the changes in market parameters in order to optimize the resultant profit or revenue. In this case, the periodic adjustment of the Optimized Discount System allows you to take into account the price demand curve drift, depending on the discounts balance. The frequency of adjustments and the next Discount System generation subsequent implementation into practical work on the market is determined by statistical sales data validity. Usually, for an adjustment period, it is sufficient when in the price range, data on 5-7 sales is collected. This period should not be increased excessively, since in this case the dependencies that determine the discounts will be “smoothed out” and the accuracy of calculations will decrease.
To obtain correct results from the site and their competent application, it is necessary to take into consideration the following:
A. User guide on COD operation.
B. Requirements for input base values.
C. Calculation data generation and their interpretation.