Pricing strategies
Cost-based, competitive, elasticity, KVI, and combined strategies.
A strategy decides the target price for a SKU before guardrails are applied. Elastly's engine is transparent: every target is a deterministic function of real inputs, not an opaque model output.
Cost-plus
Price up from cost to a target margin or markup. price = cost / (1 − targetMargin) for a margin target, or cost × (1 + markup) for a markup. Used when there's no competitor signal, typically targeting the midpoint of your margin band.
Competitive
Price relative to the competitor median for the SKU:
- Match — meet the median.
- Beat — undercut the median by a set fraction.
- Index — hold a fixed percentage above or below the median.
Competitive pricing kicks in automatically when competitor data exists for a SKU.
Beyond the basics
Elasticity, sensitivity, KVI (known-value-item) emphasis, and segment/geographical strategies build on the same transparent foundation — each contributes drivers to the recommendation rather than a black-box score. Whatever the strategy, the target then passes through your guardrails before it's recommended.