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.
Demand Insights for Strategic Pricing
- The Clearance Price Elasticity Module™ analyzes how different discount levels impact customer demand
- Adjusts for depleted assortment profiles (e.g., remaining extreme sizes in apparel)
Tailored Pricing Strategies for Your Goals
- Provides optimal pricing tailored to your goals, whether maximizing revenue or clearing inventory by a specific deadline
- Offers two modes:
- Predictive Mode: Merchant sets the price; CPE forecasts demand
- Prescriptive Mode: CPE recommends the most effective price to achieve retailer objectives
Advanced Insights and Predictive Power
- Inventory Clearance Forecasting: Predicts how much of your remaining stock will sell through at different clearance price points
- Elasticity Analysis: Analyzes historical pricing data to identify which categories, lines, or items are elastic or inelastic to markdown pricing
Relevant Resources
Lifecycle Pricing and Consumer Psychology
Pricing shapes how customers perceive value and make buying decisions. This blog explores how AI-based pricing strategies—from regular pricing to clearance—can influence shopper behavior, maximize revenue, and maintain brand integrity throughout the product lifecycle.
Traditional Pricing vs Dynamic Pricing: Which Approach is Right for Your Everyday Pricing Strategy?
A solid, consistent everyday pricing strategy is the cornerstone of long-term success and retail profitability. If you’re still relying solely on Promotions, Markdowns, and Clearance strategies to drive profits, it’s time to rethink your approach. So, what is The Best Approach for Setting Everyday Prices?
How AI-Powered Demand Forecasting Enhances Supply Chain Efficiency
Traditional demand forecasting often leads to stock imbalances, missed revenue, and inefficiencies. AI-powered demand forecasting offers greater accuracy, reduced stockouts, and optimized inventory management. But why are so many retailers still hesitant to adopt it?