Price Optimization helps you set the best price to maximize revenue, margin, or sales volume based on business objectives and product performance. Below is a step-by-step guide using the system shown in your screenshots.
1. Start in the Pricing Strategies Dashboard
Navigate to Pricing strategies.
Click the Create pricing strategy button (top right).
Select Price optimization from the dropdown menu.
2. Select Product Selection Mode
In the Product selection tab:
Choose Dynamic (recommended) so products are added automatically based on filters.
Use filters such as Brand, Category, or SKU to target the right products.
Example:
Brand contains PrettyLittleThing.Click Apply to see filtered products with key metrics (sales, units sold, gross profit, etc.).
3. Configure Optimization Settings
Switch to the Optimization settings tab:
Grouping:
Optimize products individually (default)
Or in groups (e.g., by parent product or variant group)
Start Price:
Define the baseline for optimization (usually current price).
Optimization Focus:
Choose the goal of the strategy:
Profit Maximization with Sales Protection
Sales Growth with Profit Protection
Volume Expansion with Profit Protection
Or Customize using a balance slider (Sales vs. Gross Profit)
Example:
For a growth phase, choose Sales Growth with Profit Protection with:
💡 "Protect profit from dropping" checked
🚫 “Protect sales from dropping” unchecked
Set a cap on price changes (e.g.,
25%)
4. Set the Schedule
Under the Schedule tab:
Start immediately or set a future date.
Define an end date or leave it as Never.
Choose replication rules:
Automatically approve new prices
Or require manual approval
Set frequency for recalculation (e.g., Daily at 12:00).
5. Assign Strategy Zones (Optional)
In Strategy zones, you can localize strategies:
Choose specific stores or regions (e.g., London Hypermarket, UK Online Store).
This enables geo-targeted pricing strategies.
6. Set Rounding Rules
Head to Rounding rules:
Define rounding brackets for various price ranges (e.g.,
€5–19.99→ round to *.25, *.75).Click + New rounding rule to add more.
Toggle “Apply price rounding automatically” to enable consistent pricing.
7. Apply Safeguards
Go to Safeguards to prevent pricing errors:
Click + Add safeguard.
Example configurations:
Price floor = Starting Price – 25%
Price ceiling = Starting Price + 25%
Price floor based on 10% unit margin
Combine safeguards for robust protection (margin + range limits).
8. Review & Save the Strategy
Click Save.
Give your strategy a clear name (e.g., “Price optimization strategy – PLT”).
You’ll see a summary of:
Strategy type
Product selection method
Filters used
Product & variant count
Start/end dates
🎉 Your strategy is now active or saved as a draft for future execution.
✅ Best Practices for Price Optimization
🧪 Start small with a filtered segment (e.g., one brand or category).
📉 Monitor gross profit and volume forecasts to validate results.
🔄 Use recurring updates to adapt to market changes.
🛡️ Combine safeguards and manual approval for sensitive items.