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Price optimisation · Elasticity · Competitor monitoring

Prices set by demand, competitors and margin rules, not last year's spreadsheet.

AI dynamic pricing software for ecommerce, retail and B2B distributors. It learns price elasticity per product, watches competitor prices, respects your margin and brand rules, and sends recommended prices to Shopify, your ERP or your quoting tool for approval.

SKU-level elasticity, refreshed weeklyGuardrails floor margin, MAP and max change per weekA/B test cells to prove the lift

What is AI dynamic pricing software?

AI dynamic pricing software is a system that uses machine learning to estimate how demand for each product responds to price, then combines that with competitor prices, stock and costs to recommend prices that meet a goal such as gross profit. It outputs price recommendations per SKU or customer segment, within the margin and brand guardrails you set.

Pricing and revenue managementDelivered in the US, UK and UAEUpdated
The cost of static prices

Every SKU priced the same way leaves margin on some and volume on others.

Price lists get updated once a year with a flat uplift. Some products could carry more; others lose sales to a competitor who moved last Tuesday. Nobody has time to look at 20,000 SKUs one by one.

A 1% price improvement lifted operating profit by almost 8% on average across the S&P 1000 in McKinsey analysis.[1]

Retailers using dynamic pricing typically see 2% to 5% sales growth according to McKinsey.[2]

Margins improve by 5% to 10% in the same McKinsey work on retail dynamic pricing.[2]

A B2B medtech company saw a 4% to 8% margin uptick from a data-driven dynamic pricing approach (McKinsey).[3]

What we deploy

A pricing engine your category managers can overrule.

Inputs · sales, costs, competitors

Pricing data foundation

Transactions, costs, stock and competitor prices joined at SKU and channel level, cleaned of promotions and stock-outs.

  • Order history from Shopify, Magento, BigCommerce, NetSuite, SAP or Dynamics
  • Competitor prices from marketplaces and permitted feeds
  • Landed cost, stock cover and supplier terms
Model · elasticity and optimisation

Elasticity and price optimiser

Demand models estimate how volume moves with price, then an optimiser picks prices that hit your objective within rules.

  • Elasticity by SKU, pooled across similar items for thin data
  • Objectives: gross profit, revenue, or sell-through before season end
  • Rules: margin floor, MAP, price ladders, max weekly change
Output · channels and quotes

Approved prices into every channel

Recommendations go to a review screen, then to your storefront, ERP price lists or B2B quote tool.

  • Approve by category, exception or bulk
  • B2B: customer-segment price guidance in Salesforce CPQ or the ERP
  • Test and control cells to measure lift
The 6-week production pilot

Six weeks, because a price test needs time to read.

Weeks 1–2

Data and objective

We load 18–24 months of transactions and costs, pick one category, and agree the metric, usually gross profit per week in a test cell against control.

Week 3

Elasticity and rules

Models are built and sanity-checked with your category manager. Margin floors, MAP and brand price ladders are written as hard rules.

Weeks 4–5

Live test

Recommended prices go live on a test cell of SKUs or stores while a matched control keeps current pricing.

Week 6

Read the result

We compare gross profit, units and conversion between test and control and decide with you whether to scale.

Options compared

Pricing approaches compared

CriterionCost-plus spreadsheetRepricing toolStratgik build + run
LogicFixed markupRules, often match or beat competitorElasticity plus competitors plus margin rules
Protects marginYes, ignores demandCan race to the bottomHard floor and objective set by you
B2B customer pricingManual discount bandsRarelySegment-level guidance in CPQ or ERP
Best fitFew SKUs, stable costsMarketplace sellers matching AmazonThousands of SKUs, multichannel or distributor
Proof of liftNoneDashboard claimsTest vs control cells
PricingStaff timePer SKU or GMV shareFixed pilot and monthly run fee
Why it matters now

Price is the biggest profit lever most companies barely use.

Costs have moved faster than price lists. A small, well-targeted price change beats most cost programmes, if it is based on real demand rather than a flat uplift.

  • Set hard margin floors before optimising
  • Change prices in steps, not jumps
  • Always keep a control group
  • Let category managers overrule and log why
~8%operating profit gain from a 1% price improvement, S&P 1000 average (McKinsey)[1]
2–5%sales growth typically seen from retail dynamic pricing (McKinsey)[2]
5–10%margin improvement typically seen from retail dynamic pricing (McKinsey)[2]
10%gross margin rise for an Asian ecommerce player using an elasticity module (McKinsey case)[2]
Work out the numbers first

What is a better price worth on your revenue?

The margin uplift is an assumption; the pilot measures it in a test cell against a control.

Added gross profit per year

Test this in a pilot

Illustrative estimate using your inputs and stated assumptions, not a quote or guarantee. The pilot measures the real figure against your baseline.

Pricing

A fixed fee, not a share of your GMV.

Pilot

$22,000 one-time

6-week pilot, one category or region

  • Elasticity models for up to 5,000 SKUs
  • Competitor price feed for one market
  • Margin, MAP and ladder guardrails
  • Test vs control readout
Scope my pilot
Most teams continue here

Run

$5,000 / month

per month, production pricing

  • Weekly model refresh and recommendations
  • Approval screen for category managers
  • Push to storefront, ERP or CPQ
  • Monthly lift report against control
Talk to us

Scale

$12,000+ / month

per month, all categories and channels

  • Full catalogue across web, marketplace and stores
  • Markdown and clearance optimisation
  • B2B customer-segment and quote guidance
  • Multi-currency pricing for US, UK and UAE
Plan a rollout

Competitor data subscriptions, model compute and cloud usage billed at cost with no markup; taxes excluded. GBP and AED prices are indicative conversions from USD.

Questions buyers ask

AI dynamic pricing software: frequently asked questions

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.

Next step

Pick one category. We will show you what its prices should be.

In a 30-minute call we review your data, channels and pricing rules and design a test-and-control pilot you can read in six weeks.