Profit Optimization Software

Profit optimization is a process where your products are set to a price point that will deliver you the best possible financial outcome. The simple profit formula is calculated by multiplying the amount of products sold (volume) and the profit margin per product (price-all costs). The optimization process also takes into account product cannibalisation (sales increased in one product lowers the sales in other products) and other relevant costs (marketing, product returns) that would lower your total profits. 

Sniffie profit optimisation module is based on enforced learning method which tests your shops real demand and starts to learn from the process. The process starts with a learning phase where the AI is given automatically your transactional history (orders). From that learning the machine starts to find out which price point will be the most optimal in terms of total profit (volumes X profit).

Profit optimisation works best for the products that are harder to compare online. Such product are often private labels and therefore have no comparison online. All products can benefit from profit optimization.