This episode dives into MGM Resorts' sophisticated pricing strategy for its retail stores, specifically highlighting how they leverage price optimization software. Learn how dynamic pricing, influenced by factors like location within a resort and time of day, maximizes profits for everyday items, offering valuable insights for any retailer looking to optimize their pricing models beyond traditional methods.
Key takeaways
Implement price optimization software to dynamically adjust product pricing based on various factors, such as demand, location, and time.
Analyze how seemingly minor item differences (e.g., a bottle of water) can justify different price points across different retail locations within a larger property.
Consider time-based pricing adjustments for products with fluctuating demand, like post-party essentials priced differently on a Wednesday morning versus a Sunday morning.
Move beyond static pricing by investing in analytics to understand granular profit drivers and customer behavior at different touchpoints.
MGM Resorts International is best known for its casinos and hotels (most of which are in Las Vegas, including The Bellagio, MGM Grand, Mandalay Bay, The Mirage, among others), but within those properties the company operates retail stores. In episode 38 of Total Retail Talks, Steve Schnur, director of merchandise planning and analytics for MGM…
What does this episode say about retail & omnichannel?
Implement price optimization software to dynamically adjust product pricing based on various factors, such as demand, location, and time.
What does this episode say about product & merchandising?
Analyze how seemingly minor item differences (e.g., a bottle of water) can justify different price points across different retail locations within a larger property.
What does this episode say about analytics & attribution?
Consider time-based pricing adjustments for products with fluctuating demand, like post-party essentials priced differently on a Wednesday morning versus a Sunday morning.
What does this episode say about retail & omnichannel?
Move beyond static pricing by investing in analytics to understand granular profit drivers and customer behavior at different touchpoints.
