Khimetrics

Khimetrics, Inc. operated as a specialized provider of customer demand management and price optimization software, primarily serving the retail, financial services, and consumer packaged goods (CPG) industries. Founded in 1996 and based in Scottsdale, Arizona, the company carved a niche in the enterprise software market by offering solutions that enabled businesses to analyze and forecast customer demand to make informed decisions on pricing, promotions, and assortment.

The company was steered by CEO Brent Lippman, a serial entrepreneur who previously led JDA Software. Lippman identified the potential in the company's scientific intellectual property, provided initial angel investment, and secured further venture capital funding. Under his leadership, Khimetrics experienced significant growth, with sales increasing over 1,600 percent since 2001, which earned it a place on Inc. Magazine's list of the 500 fastest-growing private companies for two consecutive years. This growth trajectory was supported by investors including Black Diamond Ventures, Boston Capital Ventures, and Koch Genesis.

Khimetrics' core offering was its Retail Revenue Management Application Suite, a Java-based platform that utilized patented, model-based pricing solutions. This software allowed retailers to synchronize their merchandising strategies with customer demand by analyzing vast amounts of data to optimize pricing, boost profit margins, and improve competitive positioning. The platform was recognized for its intuitive user interface, which followed the logical workflow of a retail professional. Clients included major retailers such as Lowe's, 7-Eleven, and PETsMART.

The business model centered on selling its patented software solutions and expert services, which promised a significant return on investment in less than a year. In a strategic move to bolster its retail software portfolio, SAP AG announced its acquisition of the privately-held Khimetrics in November 2005, a deal that was completed in January 2006 for a reported $175 million. The acquisition was part of SAP's strategy to integrate narrowly-focused solutions into its comprehensive SAP for Retail suite, built on the SAP NetWeaver platform, allowing them to offer a more complete end-to-end retail solution.

Keywords: revenue management, price optimization, demand forecasting, retail analytics, customer demand management, retail software, enterprise software, merchandising strategy, demand intelligence, consumer packaged goods, CPG analytics, SAP acquisition, financial services analytics, pricing solutions, promotion optimization, assortment planning, Brent Lippman, retail technology, demand modeling, supply chain management