Skip to main content
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Bumped by Community user
Source Link

Calculate optimal discount for product bundling

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!