AI-Powered Price Optimization
Move beyond blanket margin targets and simple rules. Our AI agents explore millions of price paths to find the mathematically optimal solution—maximizing profit while respecting every constraint and strategic lever in your business.
Describe Your Goals in Plain Language
Unlike traditional pricing tools that require complex configuration, our AI agents understand what you want in human language. Tell them 'I want to gain market share in Men's Outerwear' and they'll translate that into specific recommendations—optimizing for volume growth while managing margin trade-offs.
- Express strategic intent: 'Maximize profit in Dairy' or 'Be most competitive on produce'
- Ask questions: 'What's causing margin decline in Electronics?'
- Explore scenarios: 'What if we match Competitor X on these categories?'
- Iterate until the recommendations are exactly right for your business
What Retailers Face with Pricing Today
Most retailers struggle with pricing because the problem is too complex for humans to solve optimally. Strategies are too broad, price investments don't get recognition, and critical product relationships live in planners' heads instead of systems.
- Blanket margin targets that don't consider product nuances
- Price investments on products customers don't notice
- Varying category performance without clear diagnostic tools
- Tribal knowledge of product relationships that isn't codified
- Manual analysis cycles that take weeks instead of hours
What Retailers Face Today
Same margin targets applied everywhere without considering product nuances
Price investments not getting credit from customers who don't notice
Product relationships live in planners' heads, not in systems
Some categories performing well, others underperforming without clear reasons
Teams spending weeks on analysis that could be automated
The Solution: AI-powered price optimization addresses all these challenges by analyzing every product, codifying relationships, and recommending de-averaged strategies.
Demand Response to Price Changes
Insight: AI calculates unique elasticity for each product. High elastic products (like commodities) are very price-sensitive, while low elastic products (like necessities) respond less to price changes—enabling precise pricing strategies for every item.
Understand How Each Product Responds to Price
Every product has a unique demand curve. Some products are highly elastic—small price changes drive large volume swings. Others are inelastic—customers buy regardless of price. Our AI calculates elasticity for every product, enabling precision pricing that maximizes results.
- AI-calculated elasticity for every product in your assortment
- Understand the volume-margin trade-off before making changes
- Identify products where you can take margin with minimal impact
- Find opportunities where small price decreases drive significant volume
Invest Where Customers Actually Notice
Customers judge your value based on a small subset of products—Key Value Items (KVIs). Our AI identifies which products drive perception by analyzing Price Importance, Price Visibility, and Research Intensity, then calculates a Customer Value Perception Score for your entire assortment.
- Data-driven KVI classification, not gut feel
- Price Importance: How much price influences purchase decisions
- Price Visibility: How often customers notice this price
- Research Intensity: How much customers compare prices on this item
- Invest on Super-KVIs, take margin on Non-KVIs
Customer Value Perception Score
Strategy: Invest in price on Super-KVIs and KVIs to win perception. Take margin on Non-KVIs where customers don't compare prices.
Strategic Role Assignment
Strategic Roles for Every Category
Not all categories serve the same purpose. Our AI plots each category on a Customer Score vs Business Score matrix to assign strategic roles that guide differentiated pricing strategies.
- Core Performers: High customer & business scores—drive both traffic and profit
- Customer Magnets: High customer score, lower business score—competitive pricing to drive visits
- Profit Builders: High business score, lower customer score—build margin contribution
- Essentials: Lower scores on both—manage efficiently with selective focus
Related Products Priced Together
Customers expect logical pricing across product variants. A Red T-shirt should cost the same as a White T-shirt. Our AI automatically detects price family relationships and flags violations—preventing customer confusion and maintaining pricing integrity across your assortment.
- Automatic detection of price family relationships
- Real-time violation alerts when products drift out of alignment
- Support for size breaks, color variants, and pack size logic
- One-click remediation to restore price family integrity
Related Products Priced Together
Red T-Shirt is priced $5.00 above family target. Customers expect consistent pricing across color variants.
Strategic Tier Pricing
AI Optimization: Maintains strategic price gaps between tiers (typically 50-100%) to encourage trade-up while preserving tier integrity.
Strategic Tier Pricing That Drives Trade-Up
Good-Better-Best architecture guides customers toward higher-value options while preserving entry-level accessibility. Our AI maintains appropriate price gaps between tiers (typically 50-100%) to encourage trade-up without cannibalizing your premium products.
- Automatic tier gap maintenance across your assortment
- Prevent compression that erodes premium positioning
- Identify opportunities to introduce new tier levels
- Balance accessibility with trade-up incentives
True Mathematical Optimization
Not Heuristics: Our engine explores all possible price combinations, applying your constraints, to find the mathematically optimal solution that maximizes your objective.
100M+ Price Paths—True Mathematical Optimization
This isn't heuristics or simple rules. Our optimization engine explores over 100 million possible price combinations, applies all your constraints, and finds the mathematically optimal solution. No human or spreadsheet can match this precision.
- Explore 100M+ potential price paths per optimization run
- Apply all constraints simultaneously: margins, competitors, families, tiers
- Find the global optimum, not a local maximum
- Maximize your objective: profit, revenue, volume, or custom goals
AI That Finds Opportunities While You Sleep
Unlike traditional tools that wait for you to ask, our AI agents continuously monitor your data—identifying pricing opportunities, competitive threats, and constraint violations in real-time. Recommendations surface automatically, so you never miss an opportunity.
- 24/7 monitoring of your entire assortment
- Automatic alerts for competitive price changes on KVIs
- Proactive identification of margin opportunities
- Early warning for price family and tier violations
Always Working: Our AI continuously analyzes your data and surfaces opportunities—you don't have to ask.
Additional Pricing Capabilities
Beyond the core optimization, our platform supports a full range of strategic pricing levers used by the world's leading retailers.
Competitor Indexing
Set differentiated competitive positions by product importance. Be aggressive on KVIs, protect margin on tail products.
Bigger-Pack-Better-Value
Maintain logical unit price progressions across pack sizes to reward bulk purchases appropriately.
Channel Differentiation
Different pricing strategies for online vs in-store, reflecting different competitive sets and cost structures.
Promotional Integration
Coordinate regular pricing with promotional calendar to avoid conflicts and maximize total impact.
Cost Pass-Through
Automatically adjust prices in response to cost changes while respecting all other constraints.
Rounding Rules
Apply psychological pricing rules ($X.99, $X.95) while maintaining optimal price points.
How It Works
Connect Your Data
We securely ingest your transaction, product, cost, and competitor data—integrating with your existing systems
Configure Your Strategy
Define your pricing rules, category roles, competitive targets, margin floors, and business constraints
AI Optimizes Continuously
Our engine explores 100M+ price paths, applying all constraints, to find mathematically optimal prices
Review & Act via Chat
Review recommendations, ask questions, iterate with the AI agent, and approve changes with confidence
Frequently Asked Questions
Ready to Unlock 3-5% Margin Uplift?
Your competitors are still using spreadsheets. With Hallon's AI-powered price optimization, you'll find margin opportunities they can't see and execute strategies they can't match.