AWARD-WINNING AI SOFTWARE

Price optimization & elasticities

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Our solutions: Game-changing features

Smart price setting engine with margin guardrails

Our solution doesn’t just recommend prices — it determines the optimal price point that balances volume, margin, and revenue targets, factoring in unit-level COGS, retailer margin structures, and strategic brand guardrails. It automatically flags unsustainable price moves that would push SKUs below breakeven or dilute long-term brand equity.

Outcome simulation with demand transfer cross-effects

We model both own-price elasticity and cross-elasticity effects at the SKU and pack-levels, ensuring that price changes for one item don’t cannibalize the rest of the portfolio. This helps brand owners manage laddering, tier roles, and price gaps intentionally — for instance, preventing a 6-pack promo from pulling volume away from a 12-pack flagship SKU.

Multi-objective optimization

The platform allows users to optimize for different goals — profit, volume, revenue, or share — at any level (product, pack, retailer, or region). It finds the optimal pricing balance that satisfies both brand and retailer goals, even under margin or promo constraints.

Elasticity-driven pricing optimization under constraint

Our AI engine runs constrained optimization models—factoring in COGS floors, retailer trade terms, planned promotional spend, and even packaging or logistics costs. You can optimize pricing strategies by scenario—e.g., “maximize margin in low-elasticity SKUs while holding volume in hero packs”—and the engine will simulate outcomes with full elasticity overlays.

Value created: specific metrics & use cases

Gross margin lift of 14%

A global food brand used the tool to identify low-elasticity SKUs that could absorb price increases while maintaining price points for competitive battleground SKUs. This resulted in a 14% improvement in gross margin across core categories while preserving 97% of baseline volume.

By isolating ineffective discounts that failed to close competitor gaps or drive volume, a snacks company restructured its discount strategy and redirected $6M in trade budget toward high-elasticity SKUs and price ladders that worked.

Cross-elasticity modelling helped a beverage brand fix internal pricing conflicts where multipack discounts were undermining single-pack sales. Restructuring the pack price hierarchy resulted in better tier role clarity and a 4.5% category share gain.

Brands using our platform gained a measurable pricing advantage by closing unnecessary gaps and reinforcing premium positioning where appropriate. By identifying overpriced SKUs vulnerable to private label and underpriced items with untapped pricing power, one snacks brand reduced revenue leakage by 9% while maintaining volume — and a personal care brand defended its premium tier with targeted price increases that boosted margin by 11%.

Capturing the nuance of the consumer brands sector

SKU and retailer-specific elasticity coefficients:

Capture unique price responses by SKU, channel, and outlet to drive smarter pricing decisions and uncover hidden margin opportunities by location.

COGS and profit envelope embedded at every step:

Embed COGS at the SKU level to ensure pricing decisions protect margins and preserve value, optimizing profitability across your product range.

Pack size and tiering strategies:

Model elasticity by pack size to optimize tiered pricing, driving revenue growth while minimizing volume loss across value and premium offerings.

Competitor elasticities and gaps:

Analyze competitor price gaps by segment and channel to defend premium pricing and adjust for competitive pressure, preserving margin and share.

Cross-effects demand transfer to preserve pack strategy:

Preserve pack strategy by adjusting cross-SKU pricing to maintain role integrity and prevent value leakage, ensuring optimal volume and pricing balance.

Flexible strategy by business function:

Customize strategies for each business function with scenario simulations and tailored dashboards, giving teams the insights they need to optimize performance.

Resilience to data gaps and shopper complexity:

Overcome data gaps with built-in harmonization and elasticity modeling, boosting pricing confidence and alignment even with incomplete data.

This pricing optimization & elasticities solution isn’t just a pricing tool — it’s a strategic control tower. By weaving together elasticity, margin realities, competitor gaps, and internal pack architecture, it gives consumer brands the power to price with precision, protect profit, and lead confidently in complex, competitive markets.

Live at

Our out-of-the-box solutions are fully customizable to fit your team’s workflows, brand goals, specific constraints, retailer needs, shopper behaviors, and strategic objectives.

Find out why Insite AI is chosen in RFPs over competitors like McKinsey, BCG, Tiger, Fractal, Sequoya, and Anaplan.

Get in touch

Our friendly and efficient team is here to discuss your ideas. No pressure, just solutions.

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