Pareto L-1
Data-Driven Pricing Optimization
Engineered to enable data-driven pricing, the Pareto L-1 model uses advanced machine learning to determine how the market reacts to price shift and then uses this knowledge to determine the optimal price for each SKU.
PRECISE DEMAND ESTIMATES
L-1 stands out for its remarkable ability to understand the relationship between price and demand at the individual store level.
By accurately predicting how the quantity of each SKU sold changes with price—an economic concept known as price elasticity—L-1 identifies the optimal pricing strategy that maximizes returns for the store.
THE KNOWN COUNTERFACTUAL
L-1 enables each store to leverage the collective knowledge of the national restaurant market. Using Transfer Learning, it analyzes tens of thousands of similar restaurants to identify which pricing strategies have been most effective for comparable SKUs. This allows L-1 to recommend strategies that a store may have never tried or under market conditions it has never encountered.
By applying these insights, L-1 accurately estimates the outcomes of alternative pricing strategies, selecting price points that maximize returns. This ensures that every decision is backed by a vast, data-driven understanding of real-world pricing dynamics.
Seamless Operator
Experience
We've developed a pricing model so easy to use, any operator with access to the internet can begin making data-driven pricing decisions!
STRAIGHTFORWARD INSIGHTS
L-1 translates complex econometric analysis into clear, actionable pricing recommendations, enabling effortless data-driven pricing.
With Pareto's online portal, operators with Pareto Insights receive key pricing intelligence while operators with Pareto Pro get exact pricing recommendations.
WHITE GLOVE INTEGRATION
L-1 seamlessly integrates with existing systems, requiring no technical effort from operators.
Our team handles the entire setup—from data onboarding to ongoing support—ensuring a frictionless experience.
With white-glove service, operators can start optimizing prices effortlessly, without any disruption to daily operations.
