PRODUCT · THE ALGORITHM

Most tools recommend.
Ours closes the loop.

Every pricing tool stops at a number a human has to approve. Elastly sets the price, watches the market respond, measures whether it was right, and relearns, so the engine prices better every cycle.

CLOSED-LOOP CYCLE · LIVECYCLE 47
1
SetLIVE
Price published to every channel.
$124.00
2
ObserveMARKET
Realized quantity and margin come back.
+8.4% vol
3
MeasureGRADE
Outcome scored against the forecast.
on target
4
RelearnRETRAIN
Estimation models and policy update.
Feeds the next price. Each cycle sharpens the model.+2.1% MGN
THE MODEL

A price isn’t a guess. It’s a dependency graph.

Elastly decomposes every price into the signals that drive it, terminating in one objective: expected earnings. Every term is causal, traceable, and graded.

01 · SIGNALS
Cost build-upDemand driversCompetitor pricesCustomer and segment
02 · ESTIMATION
Elasticity and demand forecast
Per product by segment, with a confidence score on every estimate.
CONF 93%
03 · OPTIMIZER
Maximize expected earnings
Subject to guardrailsWeighted objective
04 · RECOMMENDED
$124.00
FINAL · PER SEGMENT
THE OBJECTIVEExpected earningsforecast quantityunit margin
TUNE THE OBJECTIVE

You decide what
“optimal” means.

Most tools quietly optimize for margin or revenue and never tell you which. Elastly makes the objective first-class: dial the blend per product group and see the trade-off before you commit.

MARGINBALANCEDVOLUME
MARGIN
+1.1 pts
REVENUE
+3.1%
VOLUME
+3.3%
EXPECTED EARNINGS
+4.2%
VS TODAY
MARGINVOLUME
Margin +1.1 pts, volume +3.3%, expected earnings +4.2%.RECOMMENDED$124.62 +0.5% vs today
THE ALGORITHM STACK

Three layers, increasing sophistication.

Rules carry the early value and never get bypassed. Estimation adds prediction. Optimization closes the loop. ML always proposes inside the rules, never around them.

01
BACKBONE

Rules engine

Deterministic and explainable, no training data needed. The constraints every recommendation lives inside, where ML proposes within them and never around them.

Min marginCost-plusCompetitor-relativeTier breaksRoundingMax-change caps
02
PREDICTIVE CORE

Demand and sensitivity estimation

The predictive core: it routes each SKU to the right method by how much data it has, and scores every estimate for confidence.

Price elasticityBayesian hierarchicalCausal correctionDemand forecastKVI detection
03
THE DIFFERENTIATOR

Optimization and autonomous learning

Turns estimates into the profit-optimal price under constraints, then improves itself from realized outcomes via bandits and reinforcement learning.

Constrained optimizationContextual banditsReinforcement learningReward = realized earnings
ESTIMATION ROUTERBY DATA QUALITY
High-volume SKU, clean history
%Δqty / %Δprice, gradient-boosted
Price elasticity
Long-tail or sparse SKU
borrows strength across similar products
Bayesian hierarchical
History is biased (price ≠ random)
instrumental variables / price tests
Causal estimation
Qualitative signals only
learns a sensitivity weight per driver
User-defined drivers
THE LONG TAIL, DONE RIGHT

No SKU is too sparse to price.

Most tools split crudely: elasticity for bestsellers, guesswork for the rest. Elastly routes every SKU to the right method by how much data it has, and the long tail borrows statistical strength from products like it.

Bayesian hierarchical pooling gives sparse SKUs real elasticity, not a flat rule.
Causal correction surfaces the true response, not the bias baked into historical prices.
Driver fallback holds the floor with configurable sensitivity drivers when data runs out.
THE DIFFERENTIATOR

Open loop stops. Closed loop compounds.

Everyone else hands a human a number and forgets it. Elastly measures the outcome of every price and feeds it back: the system that learns from its own results is the one that keeps winning.

EVERYONE ELSEOPEN LOOP
1Model computes a price
2Human approves it
Nothing comes back
The model never learns whether its own price was right. A human sits between it and the market, forever.
ELASTLYCLOSED LOOP
1Price set in market$124.00
2Market response observed+8.4% vol
3Models and policy relearnretrain
Realized quantity and margin become the reward signal. The engine needs less hand-holding and prices better every cycle.
SAFETY

Autonomy is earned, never assumed.

The loop never goes live before it proves itself in shadow. Each segment graduates from watching, to acting within a band, to full autonomy, and every move stays bounded and reversible.

01VALIDATING

Shadow mode

The engine recommends and logs what it would do. Nothing goes live until shadow prices would have beaten the actuals.

ACTS ONNothing goes live
02BOUNDED

Gated mode

Auto-applies inside a tight band on approved segments, typically the low-stakes long tail first. Every move logged and reversible.

ACTS ONA tight, logged band
03AUTONOMOUS

Full mode

Auto-applies within guardrails on proven segments. The human sets policy and bounds, not individual prices.

ACTS ONWithin guardrails
HARD GUARDRAILS ON EVERY MOVE
Min-margin floorMax-change capCompetitive boundsInventory limitsKill-switch and instant rollback
NO BLACK BOX

Every price carries its own reasoning.

Three things ship with every recommendation, so a CFO can trust the number and a pricing manager can reason about it, not just read it.

Explanation

The rules and weighted drivers that produced the price, in plain language.

Elasticity
Competitor
Inventory

Confidence

A data-quality score telling you how much to trust it, and what data would sharpen it.

93%
AUTO-APPROVE THRESHOLD · 90%

Counterfactual

See how the price moves if you change a rule, driver, or objective, before you commit.

Raise min-margin +2pts
$124.00$128.50
GET STARTED

See the algorithm reason on your catalog.

Connect a data sample and watch the first explainable, confidence-scored recommendations land within 48 hours.