Case Study: Leading Retailing Company achieves channel-specific margin gains and mitigates tariff impact with First Insight

Optimizing Pricing to Mitigate the Impact of Tariffs

Leading Retailing Company faced a potential hit to margins from new tariffs and needed to know where — and on which items — they could raise prices without provoking customer resistance. They partnered with First Insight, using the First Insight solution to test price sensitivity across specific programs and retail channels.

First Insight ran item-level tests and segmented results by retail channel, showing that all five items in retail channel #1 could bear price increases (willingness-to-purchase changes of roughly +0% to +10%) while the same five items in retail channel #2 showed declines (about -2% to -8%), meaning prices had to be held there. Using First Insight’s insights, Leading Retailing Company marked up all five items in channel #1 to drive more margin and maintained prices in channel #2 to protect unit sales, optimizing overall margin outcomes.