Trade

Pricing Strategy Agent

The competitor cuts its price. Match it or hold: the call is made on gut feeling.

Analyses price elasticities and competitor data.

Open agent
Public administration

Four processes that take up the most time today

Developed in Germany · Hosted in the EU

Developed in Germany · Hosted in the EU or on-premises

Delivered together with

STACKIT Sovereign hosting in Germany, single-tenant from the first user.
Rödl Legal, tax and compliance expertise for legally sound deployment.
4P Consulting Advisory and implementation for the public sector, starting with the AI readiness assessment.

A price change on 90 items is decided in an afternoon and paid for over a whole year.

Competitor prices arrive as a weekly list, sales history sits in BI, purchasing terms in the ERP. Anyone who wants to see the effect of a price cut needs all three, plus an assumption about how sales will respond. In practice, that assumption is made by whoever argues loudest.

90items in the pricing roundThat is how many items are up for decision, across four product groups.
0.24 eurosgap to the competitorThat is how far the key value item coffee 500 g sits above the nearest competitor's price.
3scenariosHold, match, undercut, each with its own effect on sales and margin.
12 monthslife of the decisionThat is how long the agreed price applies until the next round revisits it.

Thursday's pricing round chooses between three fully calculated scenarios, with sales, margin and revenue effects per product group, and over twelve months the better choice adds up to 3 to 8% revenue growth.

The 3 to 8% revenue growth is this agent's headline figure. The 0.24 euro gap on the key value item and the 90 items in the pricing round are an illustrative example and do not come from any survey.

Three steps through the process.

The agent calculates pricing scenarios and sets their margin effects side by side; the pricing manager sets the price.

Match competitor prices to key value items

The agent matches the competitor list against your own range and assigns each hit to the right item. It files hits without a clear match separately.

68 of 90 items with a competitor price, 7 hits without a match

Test pricing scenarios against the margin

For hold, match and undercut, the agent calculates the contribution margin per item and product group. For each scenario it records the sales assumption behind it.

Scenario sheet coffee 500 g: 0.62 euros contribution margin if held, 0.38 euros if matched, 0.28 euros at ten cents below

Present the decision paper to the pricing round

The agent sets out the three scenarios side by side with revenue, margin and sales effects and names the items each one hits hardest. The pricing round chooses a scenario and approves it.

preisvorlage_kw36_kaffee.pdf, 3 scenarios across 90 items

What the agent does not do.

It does not change any price in the system.

It presents the scenarios and their effects. After approval, the pricing manager enters the agreed price in the ERP and the tills.

It does not predict how a competitor will respond to a price cut.

It works with today's gap and your own sales history. The Head of Commercial Strategy weighs up the market's reaction.

It does not capture how prices are perceived on the shelf.

It sees sell-through and the competitor list, not the customers standing at the coffee shelf. *Store management brings to the pricing round whether a key value item is seen as expensive.*

Connected systems

  • ERP price maintenance
  • BI sales analysis
  • price monitoring

Operations

  • Deployment modelEU cloud or private cloud
  • Data processingGDPR-compliant, no model training on your data
  • Responsible teamsManagement, category management

The questions that come up before the first meeting.

How quickly is the Pricing Strategy Agent ready to use?

A pilot typically runs on your own data within 4 to 6 weeks. The agent connects to your existing systems rather than running as a separate, parallel environment.

Where is the data processed?

EU cloud or private cloud. Processing is GDPR-compliant and models are never trained on your data. Details in the Trust Center.

Where does the figure “3 to 8% revenue growth” come from?

It is based on experience from comparable projects and process benchmarks, not a commitment. We work out the realistic effect for your organisation during the assessment before the pilot.

Related agents.

Intake review, case 2026/04711

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