Price optimization is essential for companies as it maximizes revenue and profit by ensuring products are neither underpriced nor overpriced. It provides a competitive edge, positions products strategically, and allows dynamic responses to market changes.
Optimized pricing offers insights into customer behavior, aids in market segmentation, and enhances inventory management by balancing supply and demand.
It fosters long-term growth and brand loyalty through fair pricing and ensures financial health for investments in innovation.
You are supporting a cafe with a project aimed to increase revenue from their items. They believe that they can use data science to help them!
They have asked you to develop a pricing strategy to maximize their sales and revenues for their items. They intend to use the results of your work to find their best pricing strategy.
They have provided you with their transactions data in a file called cafe_transaction_store.csv, which contains the following:
| Column | Description |
|---|---|
calendar_date |
Date of the transaction. |
holiday |
Whether the transaction date was on specific holiday. |
price |
Unit price of the item. |
quantity |
Sales quantity of the item. |
item_name |
The type of item was sold. |