Research on Pricing Strategy of Overseas Warehousing Products under Markov Chain
DOI:
https://doi.org/10.63313/EBM.9141Keywords:
Markov chain, optimal price, product profit, overseas warehouse, pricing strategyAbstract
Overseas warehouses are digital and intelligent storage facilities established by overseas companies. Overseas warehouses are not only a place for storing goods, but also an important bridge connecting production and sales, online and offline.The optimal selling price of an enterprise's products is neither the highest price nor the lowest price, but the price when the difference between sales revenue and sales cost reaches the maximum, that is, the price when the enterprise obtains the maximum profit.For the pricing problem of a single product, through mathematical model derivation, we can determine that at the optimal price, the marginal revenue of the product equals the marginal cost. At the optimal price, the price elasticity of the product is the inverse of the ratio of price to profit. Enterprises can first estimate the price elasticity of the product through random price experiments, classify the products based on this feature, and then make price decisions separately through the pricing engine. Actual test results show that after enterprises adopt the optimal price given by the Markov chain pricing model, sales, gross profit, and total transaction amount have all increased significantly.
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