How does AI dynamic pricing software work?
AI dynamic pricing software learns from your sales history how demand for each product changes when price changes, after removing effects like promotions and stock-outs. It adds competitor prices, costs and stock, then an optimiser recommends prices that maximise your chosen objective, such as gross profit, without breaking margin floors, MAP or brand price ladders.
Will dynamic pricing annoy customers or damage our brand?
It does not have to. Most mid-market sellers change prices weekly, not minute by minute, and cap how far any price can move. We set hard rules for price ladders, MAP, key value items and maximum weekly change. Category managers approve changes, and B2B contract prices stay fixed unless you choose otherwise.
How much does AI dynamic pricing software cost?
A Stratgik AI dynamic pricing software pilot costs $22,000 for six weeks on one category, including elasticity models, competitor data for one market and a test-versus-control readout. Production runs at $5,000 a month. Competitor data and compute are billed at cost. We charge fixed fees rather than a percentage of revenue.
Does dynamic pricing work for B2B distributors?
Yes, but it looks different from ecommerce. For distributors the model usually produces target price and discount guidance by customer segment, product and order size, delivered in Salesforce CPQ or the ERP quote screen. Reps still negotiate, but with a data-backed floor and target instead of a flat discount band.
How much data do we need for AI dynamic pricing?
You need around 18–24 months of transaction history with prices, quantities and dates, plus product costs. Products with few sales are grouped with similar items so they still get sensible elasticity estimates. Competitor prices help but are not essential for the first category. We check data quality in week one before committing to the test.
Is AI dynamic pricing better than a repricing tool?
For many sellers, yes. Repricing tools mostly react to competitors, often matching the lowest price. AI dynamic pricing software also considers how your own customers respond to price, your costs and stock, so it can raise prices where demand allows. For a small marketplace seller focused on the buy box, a repricer may be enough.