AI Price & Promotion Optimization - Price for Profit, Not Just Margin
Tilect's Pricing & Promotions module estimates price elasticity for each SKU and channel, refreshed weekly, then solves for the price point that maximizes profit rather than headline margin. Optimization respects real-world guardrails - minimum advertised price, cost floors, brand ladders, and anchor pricing. Promotion recommendations model halo, cannibalization, and forward-buy effects by default, so campaigns don't quietly erode the base.
What price optimization means at Tilect
More than 70% of companies still price with cost-plus: cost + fixed margin. That ignores demand entirely. Tilect replaces that logic with demand-aware optimization - pricing each SKU at the point where elasticity, competition, and willingness to pay produce the most profit.
On the median SKU in our deployments, the optimal price sits roughly 8.7% below the current price and produces about +17.6% profit at higher unit volume. That's the median - your mix will vary, but the direction is consistent.
How much margin can it unlock?
Typically 1–5% of incremental profit at the P&L line. In measured deployments, customers have unblocked up to €83,000 of margin in the first eight weeks; larger customers up to €253,000 in the same window.
Illustrative scenario (automotive): 300 mid-range vehicles at roughly €38,000 each, with discounts tightened from 20%→16% in Germany and 25%→21% in the UK, produce four points of additional margin - about €456,000. Your mix, elasticity, and competitive context will determine the realized lift.
Elasticity per SKU and channel, refreshed weekly
One elasticity curve per SKU per channel, recomputed every week so it reflects the market you're actually selling into - not the market you sold into 18 months ago. Tail SKUs included.
Constraints the solver respects
MAP (minimum advertised price), cost floors, brand ladders, anchor pricing, channel parity rules - all encoded as hard constraints. The solver will never recommend a move that breaks them. This is the answer to "will the AI break our pricing architecture?": no, because it can't.
Promotion mechanics done right
Halo, cannibalization, and forward-buy effects are modeled by default. A 20%-off promo on SKU A whose halo lifts SKU B and cannibalizes SKU C is scored on the full basket, not on SKU A alone.
Multi-market optimization
Finds optimal prices across countries simultaneously, accounting for cross-border parity rules and local elasticity differences - not one market at a time.
Recommendations you can act on and audit
Every screen ends in an action - apply, edit, or hand off. Every recommendation is auditable end-to-end: the inputs, the elasticity estimate, the constraints that bound the solution. No black box.
How pricing connects to forecasting & competitive intelligence
The elasticity model is calibrated against the same volume forecasts produced by Forecasting, and adjusted in near real time by signals from Competitive Intelligence. Three modules, one decision layer.
Questions, answered.
How does Tilect optimize prices?
It estimates elasticity per SKU and channel weekly, then solves for the profit-maximizing price within guardrails like MAP, cost floors, brand ladders, and anchor pricing.
Will it break my pricing structure?
No. MAP, cost floors, brand ladders, and anchor pricing are hard constraints in the solver, not suggestions.
How much extra profit is realistic?
Typically 1–5% incremental profit. In measured deployments, customers have unblocked up to €83,000 of margin in the first eight weeks; larger customers up to €253,000 in the same window.
Does it handle promotions?
Yes - halo, cannibalization, and forward-buy effects are modeled by default so campaigns don't quietly erode the base.
Can it optimize across multiple countries at once?
Yes. It produces optimal prices across markets simultaneously rather than one country at a time.
Are the recommendations explainable?
Every recommendation is auditable end-to-end and can be applied, edited, or handed off to your team.
Estimate your unblocked margin.
Run an 8-week Proof of Value. Cost is 100% deductible from the annual subscription if signed within 60 days.