9 Best Price Optimization Systems for Businesses [2023]

Are you still using spreadsheet software to manage the pricing of your products and services?

Do you wonder how your competitors are changing their pricing quickly to the market ques? The answer to all these questions is simple: start using pricing optimization software applications today!

What Is a Price Optimization Software?

In simple words, price optimization software applications are smart and AI-driven tools that help you to price your products and services for maximum profit. It does not mean that these tools simply suggest you list a steep price tag for your offerings compared to your competitors in the market. 

These tools analyze market trends, eCommerce marketplace pricing performance, and many other sales intelligence data to suggest optimal pricing. Thus, if there’s a sale going on in the holiday season, you can dynamically adjust the pricing of your products to sell maximum units. Alternatively, you can raise the pricing of a product that is in supply chain shortage to adjust for the extra procurement costs.

Such tools include the following technologies:

1. Smart algorithms
2. AI and ML
3. Data Analytics
4. Pricing intelligence programs to gather competitor pricing

Using these technologies, a pricing optimization tool does the following:

1. Suggest discounts based on individual customer behavior
2. Optimize price by analyzing market competition, demand, and cost structures 

Also read: Best AI Sales Tools to Sky Rocket Your Revenue

The Use Cases of a Price Optimization Software

Retail and eCom

1. Dynamic pricing for consumer goods and electronics depends on competition, demand, and supply.
2. Managing personalized, public, and seasonal discounts.
3. Adjust pricing profitably to clear excess inventory or about-to-expire stock.

Travel and Hospitality

1. Automatically adjust the room rent and other service costs depending on fluctuations in the tourism industry.
2. Offer personalized discounts and pricing to repeat and loyal customers.

B2B and Manufacturing

1. Tailoring quotes and bids to win contracts without making losses.
2. Creating profitable pricing for custom products and services.
3. Managing complex pricing structures for bulk orders.

Financial Services

1. Researching the market and central bank guidelines to create an optimal interest rate, business, loans, credit cards, etc., to stay afloat in a competitive ecosystem.
2. Dynamically pricing insurance products based on risk factors and market dynamics.

Utilities and Energy

1. Offering time-of-use pricing for peak and off-peak consumption.
2. Adjusting pricing for electricity and gas based on usage patterns and market factors.

Healthcare

1. Adjusting medication and consumables pricing based on regulatory guidelines.
2. Creating optimized pricing for treatments and procedures based on insurance providers and competing institutions.

Benefits of Using a Price Optimization Software

Here is why your business must use price optimization and management system:

1. Maximize revenue by identifying effective pricing strategies
2. Enhance profitability by balancing revenue and profit margins
3. Stay competitive by analyzing and responding to competitors’ pricing
4. Personalize pricing for different customer segments and behaviors
5. Make data-driven decisions using advanced analytics
6. Adapt quickly to market dynamics with agile pricing adjustments
7. Manage discounts efficiently to boost sales without hurting profitability
8. Enforce and implement new pricing and discounts across online and offline platforms quickly

Also read: Winning Sales Strategies to Help Close Deals Better

Features to Look For in a Price Optimization Software

When choosing a price optimization and management tool, look for a blend of the following features and functionalities:

1. Easy-to-use interface for user-friendly navigation and seamless operation.
2. Historical pricing data for insights from past pricing trends and patterns.
3. APIs for low-code integration with various business apps and tools.
4. Real-time pricing data to get up-to-the-minute pricing for products and services.
5. Data analytics and insights for decision making.
6. Custom pricing rules to manually override automated and dynamic pricing policies.
7. Take ad-hoc price modification decisions based on quick market changes to avoid losses.
8. No and low code integration with shopping cart tools.
9. Dashboard templates to create bird’s eye views of pricing for all product and service segments.
10. Competitive Analysis to evaluate competitors’ pricing strategies.
11. AI and machine learning for generative pricing suggestions.
12. Suggest pricing forecasts by analyzing in-house and market data.

Also read: Best Configure Price Quote (CPQ) Software

Now that you know the basics of price optimization and management software, find below some of the best that most profitable business houses use: 

PROS

Do you plan to deliver smartly tailored and customized pricing instantly for every selling and buying interaction in your business? Then, regular spreadsheet tables are not enough. You need robust price optimization software like PROS.  

PROS utilizes pricing science, artificial intelligence (AI), and machine learning (ML) to optimize the pricing of your offerings every day. It uses a segmentation model for pricing and continuously updates it to include the changing business needs. By analyzing the customer and their willingness to pay a premium price, the tool dynamically recommends profitable pricing on your online marketplaces. 

Moreover, its robust data analytics and visualization module tells you how price adjustments impact your business. Not to mention, you can also create various eCommerce pricing models by including data from competitive situations, seasonal shifts, and demand status. 

Retalon

Retalon harnesses the power of machine learning and predictive analytics within its advanced analytics engine. Its retail AI enables you to predict pricing decision impacts. Then you can easily create recommendations for highly profitable pricing.

With Retalon, you can get rid of the process of relying on historical pricing and sales data to create a pricing model for the future. Also, you can sidestep costly pricing battles with competitors. Also, Retalon helps you to steer clear of eroding your margins through unplanned markdowns and promotions.

Retalon’s cutting-edge retail price optimization engine considers a multitude of factors previously unaccounted for. Thus, it yields truly optimal prices down to every individual product at each location. Retailers can effortlessly tailor the system to their own needs using Retalon’s intuitive business rules.

Skuuudle

Are you looking for a pricing intelligence service that can easily generate the following product and service pricing data from your competitors?

• Product descriptions
• Product categories
• Brand
• Promotions and pricing
• Product availability
• Ratings and reviews by shoppers
• Variations of the select products and so on

Choose Skuuudle’s global price scrapping and intelligence services today! It offers expert services on Price Intelligence, Product Matching, eCommerce scraping, and MAP monitoring.

Using its product cost intelligence service, you can get scalable data on competitors’ actual product costs and strategies. Then, its product matching service enables you to find an exact match of your products online, if any, through programmable and human-reviewed approaches. 

Also, there is the eCommerce price scrapping system that lets you stay competitive by matching pricing with your competitors. You should not take an impact on profits when you use Skuuudle’s intelligent pricing services appropriately.      

Reactev

Are there hundreds and thousands of products in your online or offline retail marketplace? Do you often see that some products are selling well, but you are not making enough profit from them? Also, did you notice that some products did not sell despite huge market demand? All the above indicates that your product pricing strategy is outdated, and you need Reactev, an AI-based price optimization software.

Firstly, Reactev helps you to identify all products that are being sold at lower and higher costs than the current market trend. Then, it suggests optimal pricing for those products using its AI pricing engine. It does this around the year so you can profit from sudden market demand, seasonal sales events, and holiday sales rush.

Secondly, you can smartly use its profit optimization feature to earn maximum profit from products that you are specialized in. For select high-demand and monopoly products, Reactev will suggest a price the buyers are willing to pay by analyzing the market trends.      

ScienceSoft

ScienceSoft is a leading retail price optimization solutions provider that builds customized systems for you. If you are from the retail sector and need to manage your pricing strategy smartly, check out ScienceSfot’s solutions right now. It offers the following services:

• Optimizing your product and service pricing strategies.
• If you launch new products and services, its AI-driven solution will suggest the right introductory price to capture the market momentum.
• Calculate the pricing of products and services of different segments dynamically.
• AI-driven suggestions of product markdown at an appropriate phase of the product lifecycle to avoid making losses.
• Real-time monitoring of the demand and supply of the market and changing product pricing dynamically.
• AI-driven discounts and promotions to enhance demand for a specific product.

ScienceSoft also helps you to integrate its price optimization solution with your business processes and tools like CRM, selling platforms, inventory management systems, etc.  

RapidMiner

If your in-house product development, marketing, and sales teams cannot determine how much your products should cost, try RapidMiner. The tool utilizes AI and historical product pricing data to create a pricing strategy for the future that generates the maximum profit for your sales operations.

RapidMiner uses a pricing science approach to suggest optimal pricing for products and services. Its program algorithm evaluates complex market dynamics like the following:

• Price not too high or too low
• Competitive pressures in the sector
• Market demand and trend
• Geographical factors  

Its scientific pricing strategy enables you to price any product or service fit for commercialization. Also, it offers a programmable dynamic pricing solution that you can target at minute segments, individual customers, etc., throughout the year.  

Price Intelligently

Price Intelligently helps you to set optimal pricing for a new SaaS product or optimize the pricing of existing SaaS products. It follows a novel strategy to discover the willingness to pay and accordingly price your offerings.

Firstly, it has a large audience database for targeting based on preferences, demographics, and psychographics. So, if you need to know how much a CTO is interested in paying for a new financial SaaS product, Price Intelligently will get genuine and unbiased data for you. Its audience database is over 240 million, strong in the B2B and B2C segments worldwide.

It also comes with audience data quantification tools like relative value and pricing algorithms. Using these tools and a dedicated pricing team, Price Intelligently will work with you to pick the perfect pricing for a new or existing SaaS offering.     

Competera

Competera chooses the portfolio pricing approach to compare your product pricing with the market. An AI engine processes the big data collected from the market and suggests optimal pricing that sells.

Its price optimization system targets both business profitability and increased sales. You can make either a one-off profit by selling a product at an extremely high price and then go extinct or follow a balanced pricing strategy to thrive. So, if you want to go the thriving route, choose Competera.

It offers five different pricing approaches for retailers. These are Cost-plus, Market-driven, Rule-based, Elasticity-based, and Personalized. Its pricing platform applies all the above when collecting data via price scrapping and product matches. Then, a proprietary pricing AI engine suggests a balanced price range that increases profit and sales at the same time.        

Minderest

Do you have a large eCommerce products catalog and facing difficulties in managing individual product pricing? Try Minderest, as this is the price optimization and management solution, especially for eCommerce businesses.

In the eCommerce ecosystem, product pricing is changing by the second. You might sell a smart sock baby health monitor for $50 on eBay. But, you will soon discover that your competitor is selling the same for $49 just to divert your customers to their store by giving small discounts. Now, if you got 1,000 other products, keeping track of all these becomes impossible. 

But, Minderest makes it possible by offering automated product matching and pricing scrapping. Moreover, its dynamic pricing tool automatically optimizes your product’s pricing when your competitors increase or decrease their pricing.     

Final Words

Optimization of your product and services pricing based on market data analytics is a key skill your business needs to appropriately price your offerings. Additionally, you also need to know how to price a product optimally in different stages of its life cycle. Not to mention dynamic pricing and optimal discounts personalized to different customers and clients are also key to securing a higher profit margin. 

The pricing optimization software tools mentioned above are powered by AI and complex business logic. Give a few of the above a try based on their features and choose the most suitable one for your business to stop profit leakage due to poor pricing strategy.

You might also like to read about the best Amazon price trackers to buy at the right time.