Revenue Management Solutions, Inc.

Alex Wohlhueter

Thomas Kelly

Nicholas M Kiefer

Iassena Stratieva

Michael Lukianoff

A method of selecting a site for one or more retail units uses a database of information on existing units in a chain, including store sales or profits, site characteristics available from various databases, and information on marketing expenditure in the relevant market. Sales of potential new units are forecast abstracting from advertising efforts. Thus, potential profit characteristics of a site can be evaluated without regard to existing advertising programs. This corrects a major problem with existing approaches; site decisions can be made simultaneously with marketing allocation decisions.

Method for site selection for retail and restaurant chains

A method of determining a price sensitivity index for one or more retail units is based on the relation between profits, sales or traffic and a fixed weight price index based on information from individual retail units. Statistical regression and the theory of the single-product firm is used to analyze the relation between changes in performance variables and changes in the price index, leading to a unit-specific index of sensitivity. This information allows stores to be sorted into those which can see price aggression, those which cannot, and those which are likely to respond to promotions.

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Riverview, FL, United States of America

Alex Wohlhueter