A model estimates how demand responds to price for each product and segment, using your own transaction history, competitor moves where you track them, and past promotions. It recommends a price and a promo depth within the guardrails you set — floors, MAP, brand rules — and every change is trialled on a subset before it touches the whole catalogue.
A flat margin rule prices a product with loyal demand exactly like a commodity where buyers compare three tabs. You leave margin on one and volume on the other, every single day.
Thirty percent is chosen because thirty percent was chosen last time. Nobody separates the customers who would have bought anyway, so the discount is booked as a success and repeated.
A price drop somewhere gets matched within a day, across products where the competitor is not even relevant. The reflex is fast, undirected, and directly subtracted from margin.
Prices, promotions, stock, competitor prices where you collect them, and the periods that must be excluded. Elasticity estimated on dirty history is a confident number pointing the wrong way.
Products with enough price variation get a real elasticity per segment; products without it get grouped by category and attributes. We label which is which rather than presenting both as equally solid.
Price floors, minimum margin, MAP and brand agreements, maximum change per period, rounding and psychological price points. The model can only recommend inside what your business actually allows.
New prices go live on a subset of products or stores while comparable ones stay as they are. Margin and volume are compared across the two groups before anything is applied broadly.
Recommendations refresh with new sales, stock and competitor data, and land in your PIM or e-commerce platform. Elasticity is re-estimated on a schedule, because demand curves move.
We build in your stack rather than moving you onto ours. The list below is what this solution most often connects to — other systems are a scoping question, not a blocker.
No. Elasticity is often low, and the model raises price where demand is insensitive at least as often as it cuts. Both directions are constrained by the guardrails you set.
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