Category: Pricing Strategy
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How to Use AI and Market Data to Optimise Your Pricing Strategy
Executive Summary Business leaders increasingly look to artificial intelligence (AI) to gain a competitive edge in pricing. But while AI can provide smart pricing recommendations, it doesn’t work in a vacuum. Instead, it thrives when given access to live market data—especially competitor prices—and your internal cost structure. This article explains how to use AI to…
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Caveats and Pitfalls When Using AI for Price Optimization
1. Data Quality Is a Bigger Risk Than Algorithm Choice AI pricing engines rely heavily on historical data to train demand forecasting and elasticity models. If that data contains gaps, errors, or inconsistencies—such as outdated costs, missing promo labels, or inconsistent SKUs—the resulting price recommendations may be worse than manual judgment. Example: A model trained on…
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Optimizing Prices with AI: A Practical Playbook for Revenue Leaders
1 Why Traditional Pricing Leaves Money on the Table Pricing remains the single strongest profit lever, yet many firms still rely on “cost + margin” rules of thumb or hurried competitor matching. Three blind spots persist: Blind Spot Consequence Slow competitive reaction Market share erodes or margins vanish in knee-jerk price wars. Uniform mark-ups A flat…