CLIENT:
Winery in Paso Robles, CA, USA
OBJECTIVE:
Estimate the price sensitivity associated with the winery’s portfolio of wines and recommend adjustments to price that would maximize revenue.
APPROACH:
- Several years of sales data was ingested from Wine Direct
- An econometric demand model was estimated for each SKU estimating the relationship between price and quantity demanded while controlling for other relevant factors
RESULT:
The models were exported to a dashboard to provide estimates of case sales and revenue at alternative prices where revenue maximizing price points could be identified.
