This paper illustrates how time series analysis can support regular price decision making for small convenience grocery stores.The existing literature indicates an increasing importance of strategic pricing.However, small-medium enterprises (SMEs) lack both the know-how and the financial capabilities required for advanced price analysis.
The carried research illustrates a relatively simple approach Sponges for forecasting the impact of different pricing strategies.A case study based on a Romanian SME: SM, operating in the retail sector, was selected.The collected sales data and financial performance indicators provide an interesting insight into both practices and problems faced by SMEs.
Following a detailed investigation, a particular category of products: bread and pastry products, was identified as having a major Ignition Coils impact on both sales and gross profit.Based on a series of analyses which include: forecasts, best and worst case scenarios, impacts on revenues and gross profit, SM was recommended to increase their mark-ups with 10% for all bread and pastry products.The change is predicted to produce a 9.
86% increase in total gross profit and 1.31% increase in all revenue, with minimum risks and minimal loss of sales.JEL Classification: L11.