Retail Price Optimization & Discount Analysis

Measure price elasticity per customer segment and find the revenue-maximising discount rate using Brent's optimisation method. Project Structure

DS4_RetailPrice__config.py      ← Segments, elasticity params, discount range
DS4_RetailPrice__data_gen.py    ← Synthetic 2K transaction dataset
DS4_RetailPrice__elasticity.py  ← Log-log OLS elasticity estimation per segment
DS4_RetailPrice__optimizer.py   ← Revenue-maximising discount (SciPy minimize_scalar)
DS4_RetailPrice__dashboard.py   ← EDA + optimisation curve charts
DS4_RetailPrice__main.py        ← Entry point
DS4_RetailPrice__requirements.txt

Run

pip install -r DS4_RetailPrice__requirements.txt
python DS4_RetailPrice__main.py

Key Results

Segment Elasticity Optimal Discount

Budget ~−2.0 (highly elastic) ~33%

Mid-Market ~−1.3 (moderate) ~28%

Premium ~−0.7 (inelastic) ~18%

Premium customers barely respond to discounts — over-discounting erodes margin without meaningful volume gain.