Retail Price Optimization

Elasticity-Driven Pricing & Bootstrap Validation · Kaggle Retail Dataset

bed1

bed_bath_table Cut Price -15%
Low Risk · 99.8% Win Prob

Cut price by 15.0% from $39.99 to $33.99 to capture price-sensitive shoppers—projected volume rises +123.5% for +$251.84/mo in net revenue.

Current Price
$39.99
Lowest competitor: $39.99
Recommended Price
$33.99
-15.0% within ±15% guardrail
Estimated Demand Change
7.0 → 15.6 units/mo
+123.5% projected volume
Expected Revenue Impact
+$251.84 / mo
+90.0% monthly lift

±15% Risk-Bounded Price Simulator

Test unit prices inside the ±15% churn-protection boundary

b = -4.95
$33.99 -15.0%
-15% ($33.99) Current ($39.99) +15% ($45.99)
Current Monthly Revenue $279.93 / mo
Simulated Monthly Revenue
$531.77 / mo +90.0%
Simulated Monthly Demand: 15.6 units/mo (+123.5%)

95% Bootstrap Confidence Range

Plain-English Risk Gauge · 1,000 SKU Bootstrap Resamples

99.8% Win Prob
Conservative (2.5%)
+$104.68
Expected Gain
+$251.84
Upside (97.5%)
+$476.73
$0 Break-Even Expected: +$251.84
-$120/mo 95% Confidence Interval +$560/mo
In 998 out of 1,000 bootstrap resamples, cutting bed1 to $33.99 increases monthly revenue—with 95% of outcomes landing between +$104.68/mo and +$476.73/mo.
R Statistical Engine & Portfolio Benchmark Elasticity b = -4.9483 (p = 0.0003, R² = 0.625, n = 16 mos) · Dataset Elastic Group (n = 28 SKUs): Median Lift +$631.14/mo (p < 0.0001)