Clearance Price Elasticity Module™ (CPE)
Empowers retailers to optimize clearance pricing, driving maximum revenue while efficiently reducing excess inventory.
Designed to Address End-of-Season Inventory Management
Set Clearance Prices to Maximize ROI and Clear Inventory
The Clearance Price Elasticity Module™ (CPE) is a powerful solution designed to help retailers optimize end-of-season inventory management. Whether you’re handling seasonal goods, expiring items, or surplus stock, CPE provides actionable insights to recover costs and maximize value from unsold products. It identifies the limitations of markdown pricing, ensuring you avoid excessive discounts that erode sales or margins. For inventory clearance goals, CPE offers detailed predictions of how much stock will sell at various price points. Additionally, it analyzes your clearance pricing history, helping you understand which categories, lines, or items are elastic or inelastic to price changes, enabling more informed decisions for future strategies.
Solution Features
The CPE helps retailers strike the right balance between discounts and profitability during clearance. It targets items nearing expiration, seasonal unsold goods, or surplus inventory by predicting the impact of various price reductions (e.g. 50%, 75%, 90%) on clearance goals. Here are the key benefits of this solution:
- Reduces waste and labor costs from unsold inventory
- Supports markdown strategies for efficient sell-through
- Adaptable across retail contexts, from apparel to seasonal goods
What Makes CPE a Game-Changer?
Churchill’s Clearance Price Elasticity Module™ uses advanced neural network models built from your clearance history to forecast customer reactions (Lift) to markdown price options. This ensures you can predict how different price reductions will impact demand while accounting for depleted assortment profiles, such as limited sizes or seasonal items.