Revenue
Dynamic Pricing Engine
Price on demand, inventory and elasticity — with the math exposed.
Dynamic Pricing Engine is dynamic pricing software for teams that want the reasoning shown, not hidden. Plans start at $59 a month with a 14-day free trial.
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Dynamic pricing has a reputation problem, and it is deserved. Most implementations are a black box that occasionally prices a product at £0.03 or quietly charges loyal customers more than new ones. The Dynamic Pricing Engine takes the opposite position: every price is explained rule by rule, guardrails always win, and an experiment reports whether its result is actually conclusive.
Rules that stack, in an order you can read
Pricing logic is expressed as rules that stack in sequence — demand-based uplift, inventory pressure, competitor position, time-of-day, customer segment. Each one takes the price produced by the rule before it and states what it did and why.
The output for any item is a complete derivation: base price, each adjustment with its trigger and magnitude, any guardrail that bound the result, and the final figure. When a customer or a regulator asks why something cost what it cost, there is an answer that does not require reading source code.
Guardrails are inviolable, by construction
A floor that a clever rule can argue its way past is not a floor. Guardrails here are applied after all rules have run and cannot be overridden by any of them — minimum margin, absolute price floor and ceiling, maximum change per cycle, and maximum deviation from a reference price.
The maximum-move-per-cycle limit is the one that prevents the failure people actually fear. Even if a data feed breaks and a rule demands a 70% cut, the price moves by at most your configured step, and the attempted move is logged as a guardrail breach for someone to look at. Bad inputs become an alert rather than a pricing incident.
- Minimum margin
- Never price below cost plus your required margin, whatever the demand signal says.
- Price floor and ceiling
- Absolute bounds per product or category, independent of any rule.
- Maximum move per cycle
- Caps how far a price can travel in one run, which contains both bugs and bad data.
- Reference deviation
- Keeps prices within a band of a reference point, so a drift does not compound unnoticed.
Elasticity simulation before you commit
Changing a price is a decision about revenue, not just margin. Raise by 10% and whether that is a gain depends entirely on how many units you lose — which is what price elasticity measures.
The simulator fits elasticity from your own historical price and volume data, then projects the revenue curve across a range of candidate prices and marks the optimum. It also shows the confidence interval around that curve, which is usually the more honest output: if your history contains only two distinct price points, the estimate is weak and the tool says so instead of drawing a smooth line through nothing.
How an experiment reaches a verdict
Price tests are where teams most often fool themselves. A variant looks better after four days, the change ships, and revenue does not move. The engine refuses to call a winner until the result would survive scrutiny.
- Split deterministicallyAssignment is hashed from a stable identifier so a returning customer always sees the same variant — nothing is more damaging to trust than a price that changes on refresh.
- Track revenue per visitor, not conversionA lower price converts better and can still lose money. The metric is revenue per visitor, which is the one that pays wages.
- Test significance properlyA two-proportion test with the observed effect size, not a glance at which bar is taller.
- Report a verdict, including "inconclusive"Results come back as conclusive or inconclusive with the p-value and interval shown. Most short tests are inconclusive, and saying so is the useful answer.
- Estimate the runway neededIf underpowered, the engine states how much more traffic the current effect size would need — so you can decide whether the test is worth continuing.
Stopping a test the moment it looks good is the most common way to ship a change that does nothing. Fixing the sample size in advance, and respecting it, is most of what separates a pricing programme from pricing theatre.
Who it is for
Ecommerce and D2C
Competitor-aware pricing with a margin floor that cannot be breached, and a derivation for every price when a customer asks.
Travel, events and hospitality
Perishable inventory where demand and time-to-event dominate. Rules stack naturally onto occupancy and days-remaining.
Marketplaces
Category-level guardrails across sellers who each want something different, with per-seller rules bounded by platform-wide limits.
B2B with negotiated pricing
Segment rules producing consistent, defensible quotes, so two salespeople quoting the same account arrive at the same number.
Dynamic Pricing Engine terms explained
- Dynamic pricing
- Adjusting prices in response to demand, inventory, competition or time. The mechanism is old; what is new is the expectation that it can be explained.
- Price elasticity of demand
- The percentage change in units sold for a 1% change in price. Below -1 is elastic and raising prices loses revenue; above it, the increase more than covers the lost volume.
- Guardrail
- A hard bound applied after pricing logic runs, which no rule can override. The difference between dynamic pricing and an incident.
- Price floor
- The lowest permitted price, usually cost plus required margin.
- Revenue per visitor (RPV)
- Revenue divided by sessions. The right primary metric for a price test, because conversion rate alone rewards discounting.
- Statistical significance
- Whether an observed difference is larger than chance plausibly explains. Necessary but not sufficient — a significant 0.2% lift may still not be worth shipping.
- Reference price
- The price a customer expects, anchored by what they last paid or what they see elsewhere. Moving too far from it damages trust even when the new price is defensible.
- Rule stacking
- Applying pricing adjustments in sequence, each acting on the previous result, so the derivation can be replayed step by step.
About Dynamic Pricing Engine
Define pricing rules over demand, inventory depth, competitor position, time-to-expiry and customer segment. Simulate the revenue curve before anything goes live, run experiments, and keep a full audit of every price change and why it happened.
Dynamic Pricing Engine starts at $59 a month with a 14-day free trial. Prisync Professional is $99 per month per company.
- Rule composition — Stack demand, inventory, competitor and time rules.
- Elasticity simulation — Projected revenue curve and optimal price point.
- Guardrails — Floors, ceilings and max move per cycle.
- Change audit — Every decision explained, rule by rule.
Frequently asked questions
Can a rule ever set a price I would not allow?
No. Guardrails are applied after every rule and always win: a price floor, a ceiling, a minimum margin and a cap on how far one cycle may move the price. The audit shows which guardrail bit and why.
Can I see what a price change would do before shipping it?
Simulate the revenue and profit curve across a price range first. The output states the elasticity assumption back to you and flags when the optimum sits at the edge of the range — meaning the real optimum is outside it.
How do you decide if a price test worked?
On revenue per visitor, not conversion, because a price rise that cuts conversion can still win. Each test reports the p-value, the confidence and — if it is not yet conclusive — how much more traffic it needs.
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