The amount of products sold at a given price directly translates into the total revenue and the profit.
The price strategies for different products can be based on cost, competitive prices, inventory targets, brand, traffic, etc. In each case the optimal price can be calculated.

The optimal price is the price that:

• Is based on the price strategy selected
• Satisfies all policies and restrictions
• Provides maximum GM (i.e. the best balance between higher sales with lower GM and low sales with a high gross margin)
• Dynamic (i.e. accounts for the past price changes and planned promotions)
• Calculated based on Promo campaign influences (such as type of media used in promotion - if applicable)
  

Systematic and informed decisions regarding pricing, markdowns and promotions must be made to successfully run retail business.

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