A comprehensive and agile pricing software

Pricing optimization is a key profit driver for businesses with large product catalogs and plenty of reach. Increasing the overall gross contribution margin and profits in the face of low-margin products can be quite daunting. Our Dynamic Pricing solution maps out optimal prices, creates a standardized pricing process, and generates these optimal changes in a timely manner.

With a comprehensive understanding of their customers and competition, our system would be able to grow the profits of large catalogs, reduce ad spend significantly, and give their team some valuable time back.

Part 1: understanding demand elasticity 

Our system algorithmically changes prices to fully map out the “pricing landscape.” This means developing profit curves and demand models that teach the system how a price change will alter sales. In some categories, a product is much more responsive to these changes, and it’s up to our system to understand this. By doing so, and taking into account various factors such as landing costs, cost of goods (COGs), and operating expenses, we find a price that Amazon customers want to pay at a margin that fuels overall profits. 

This is important in price-sensitive categories, where sellers are looking to maximize sales. Dynamic Pricing ensures that prices are not lowered too low, cannibalizing margins. 

In other cases, you may find that raising the price of a product has minimal impact on the overall demand of a product. In this situation, you can generate extra profits by raising your prices. 

Across a large catalog like our clients’, both scenarios played out and our Dynamic Pricing platform was able to take advantage.

Part 2: a standardized pricing procedure

Through our platform and interface, we streamlined the pricing process for our client. Simply by enrolling products, our dynamic pricing tool goes through a standardized teting phase that allows us to map the “pricing landscape.” This simple workflow helped our client operationalize this process and onboard entire teams.

One feature that increased their team’s confidence to make more streamlined decisions was our price forecasting. If a product needed a sales boost, they could simply enroll it into a pricing plan that would drive the desired goal based on profit and demand models. 

Similarly, if gross contribution margin was the top priority for a product, their brand managers could enroll it in a plan to drive that goal instead. 

The system takes the effort off the shoulders of the brand managers, allowing them to think more about the “what” and “why.” For example, what is my goal for this product and why does it matter? Then, our platform can automate the next steps that stem from those questions. 

Trellis supports this process by making pricing changes through historical data and providing pricing logs to ensure that hindsight is truly 20-20. 

This standardized pricing procedure streamlines the process for their team to make quicker decisions.

Part 3: real-time pricing changes

Analysis paralysis… data utilization… overthinking… whatever you want to call it, our dynamic pricing platform gives you the confidence to make in-the-moment decisions.

When our system sees an opportunity, it seizes it. As a competitor lowers their prices, so will we. Our algorithms react to changes in competitive landscapes, seasonality, and more to raise or lower prices to take advantage of market opportunities or mitigate risk. 

Our platform makes the statistically responsible decision (usually the right choice), in minutes, as the landscape changes.

This was a game changer for our client’s margin-sensitive, high-turnover products. Delaying an optimal price change would mean getting less profit per customer interaction.