Wine Pricing Optimization
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.

 

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