Stay competitive.
Make every margin count.

What is dynamic pricing software?

Dynamic pricing means adjusting prices as relevant conditions change. Software brings the inputs, recommendations and rules into a repeatable process. The important question is not how often a price changes, but whether the change supports your commercial objective.

For retail, e-commerce and distribution, that means comparing relevant offers, considering availability and promotions, and checking the economics of a proposed price. A competitor move is an input to a decision, not an instruction to copy it.

PRICE retrieves competitor prices daily, matches products across catalogues and helps you evaluate pricing recommendations against your margin objectives. Your team can review outputs and connect them to its existing systems.

From a competitor price to a decision.

Start with the products and markets that matter. Define the competitors your customers actually compare, then connect those offers to your catalogue. Check the match before interpreting the price gap.

Next, combine the market reference with your costs and commercial rules. A key item may need close price positioning. Another product may allow a different price because the offer, availability or service differs. Apply objectives at SKU, category or brand level, and review exceptions before publication.

1. Observe competitor prices and availability.
2. Check equivalent, similar and alternative product matches.
3. Evaluate a recommendation against your margin rules.
4. Approve, adjust or hold, then export or integrate the result.

What does a price cut do to your margin?

Consider a product that costs €60 and sells for €100, excluding VAT. Gross profit per unit is €40 and gross margin is 40%. Cutting the selling price to €90 reduces gross profit to €30 and gross margin to 33.3%.

At the original price, 100 units generate €4,000 in gross profit. At €90, you would need to sell at least 134 units to reach that amount, assuming the same unit cost. Whether that extra demand exists requires evidence; a cheaper price alone does not establish it.

This distinction matters: a higher margin percentage is not always the same as more total gross profit. Review the price, expected volume and commercial objective together.

Set a margin floor before you react.

If the minimum gross margin is 30% and the unit cost is €60, the selling price must be at least €60 ÷ (1 − 0.30). Rounded up to the nearest cent, that is €85.72. A competitor price of €80 would fall below this floor.

Margin and markup use different denominators. A 30% markup on €60 produces a €78 price and only a 23.1% gross margin. Set the definition consistently before applying a rule across your catalogue.

These illustrations use a fixed product cost and prices excluding VAT. They exclude delivery, payment fees, returns, rebates and other costs. Agree which costs belong in your pricing model before using a floor in production.

Private-label matching needs more than a barcode.

Own-brand products often have different identifiers from the branded products they compete with. Relevant comparisons depend on characteristics such as specification, material, quantity, format and intended use. A similar product should not silently become an exact match.

For example, a branded pack of ten at €20 and a private-label pack of eight at €16 both cost €2 per item. The second pack is cheaper at checkout, but it has no unit-price advantage in this example. Differences in quality and specification still need review.

PRICE supports private-label matching alongside equivalent, similar and alternative relationships. Use the comparison type to inform the pricing decision, and validate difficult matches against a representative sample from your catalogue.

Ask Pricy about the decision behind the price.

Pricy is the AI assistant inside PRICE. Talk with your data, create visualizations and rules, challenge a pricing idea and export reports for your team. It gives you another way to investigate an opportunity before choosing a response.

Bring questions such as “Which products are below my margin target?” or “Where should we investigate a price gap?” to a walkthrough. The useful answer depends on your available data and the objectives you define.

What do you need to get started?

Begin with a representative catalogue, your target competitor sources and the decisions you want to improve. Include awkward pack sizes, variants and private labels in the sample so the evaluation reflects your actual business.

Agree the cost definition, margin objectives and approval process. Then choose how outputs reach your team: Excel or CSV exports, scheduled feeds, webhooks or an API integration. The catalogue, data quality and integration scope determine the rollout plan.

1. Product identifiers, descriptions and available attributes.
2. Current selling prices, relevant costs and margin objectives.
3. Competitor sources, markets and coverage priorities.
4. Your review process and the destination for approved prices.

Evaluate pricing software on your own catalogue.

Use the same sample and scope when comparing providers. Check whether matches are commercially relevant, whether the sources cover your market, and whether your team can follow a recommendation back to its inputs.

Measure time to the first useful output and compare written proposals for that exact scope. Include setup, recurring charges and integration work. PRICE’s focus is fast setup, strong matching and competitive pricing; the evaluation should establish what that means for your project.