So recently I made some rules with my transaction data. Based on it I can determine which products are profitable to bundle it together.
But even though I know e.g. product A→ product B, are there any ways to determine how many bundles will be sold based on the discount value?
E.g. out of the 100 transactions with product A for price X and there are 40 transactions with product B for price Y(I know lift value might be better but let's keep it easy for now), if product A and B are bundled together, what is the discount rate to increase the optimal short term sales?
I do have products sold for product A and B for different kind of discount, so I was thinking using price elasticity to determine the discount for the bundle because if you know the price you know the quantity, but I dont think it is the right way of thinking and there is no price elasticity for both products.
The data I have:
Price of the product
Lift, support, confidence values and other values related to rules.
sold product per month
Discount value per product
I think these variables are more crucial.
Any suggestions would be appreciated.
Thanks in advance!