Pricing optimization software - and how to run it (with or without AI)

What good pricing optimization software actually checks

Real pricing optimization is less about dynamic pricing algorithms and more about catching margin-eroding discounts before they compound.

1. 1.

   Margin floor per SKU - Flags any product whose discounted price drops gross margin below your safe threshold.

2. 2.

   Promo-level margin drag - Aggregates discount impact across a whole promo, not just individual items.

3. 3.

   Repeat-discount products - Surfaces items discounted week after week, a sign of mispricing not promotion.

4. 4.

   Bundle and code stacking - Catches when stacked discount codes push effective price below cost.

5. 5.

   Category-level trend - Shows if margin erosion is concentrated in one category, pointing to root cause.

6. 6.

   Corrective action list - Turns findings into concrete moves: raise price, cap discount, pause promo.

Takeaway: Treat this as a weekly guardrail, not a one-time audit, since discount rules and codes drift constantly.