Pricing Software FAQ
Price optimization software refers to any software tool that is used to recommend the right prices for products being sold by a business. Price optimization software typically uses advanced algorithms and mathematical analysis to determine and predict market factors like demand in order to supply a business with optimal prices for the services and/or products sold, and needs to be provided with historical pricing and sales data to make these analyses.
Price optimization software is a type of pricing software, but not all pricing software involves price optimization. There are other pricing software that focuses on price tracking of competitors, market analysis, and other factors to enhance the pricing process of the business using it. Price optimization goes a step beyond tracking and analysis, providing actual price recommendations for products sold.
The cost of price optimization software depends largely on the provider, the features their software has, and also on the business acquiring the software, the size of their assortment, how frequently they need their assortment repriced, and so on. Generally speaking, individual businesses get their own unique quote from software providers once they make it clear what they will require from the software, and the more they require (e.g. 10,000 product price recommendations versus 1,000) the more the software will cost.
Though there are free pricing software options for things like price comparison or price auditing, there are no notable price optimization software providers that are free. Price optimization software is very advanced, so it is no surprise that it comes at a cost. Even the other free pricing software providers available are not generally recommended options, as they are free for a good reason: the services they provide are not nearly as rapid or accurate, making them less reliable if you are hoping to use them in your pricing strategy as a business. That is why all of the pricing software rated and recommended on our site are not free options, as we seek to rank only the best price optimization software available, not the cheapest available.
A good price optimization software first and foremost should be able to give your business accurate pricing recommendations for your products, or a useful price range to serve as a guideline so you can price your products manually. They do so based on forecasts and analyses of sales and pricing data which you as the user should also be able to view in a way that is comprehensive so you are always aware of where these price recommendations are coming from and why the software is recommending various price ranges for certain products. Additionally, price optimization software typically allows the user to manually approve or disapprove of its pricing recommendations, meaning it should allow you to change the prices of your products and does not do so on its own by default, so you as the user are always in control of your pricing. You should also be able to set rules for the software regarding the minimum and maximum price ranges you prefer for your products according to your company goals. The ability of recommending prices for your assortment along with the manual control of limits to the software and the visualization of your pricing data are the bare minimum features of nearly all price optimization software providers.
When following the price recommendations given by your price optimization software, you should be able to increase your revenue and sales as a result. This is because the software is giving you truly optimal prices which consider your entire product portfolio; something that you likely could not do on your own without the advanced algorithms the software uses to determine optimal prices. Optimizing your prices can also help your company maintain customer loyalty and protect your brand image. All of these benefits helps your company to remain competitive and increase your profit margins.
The software providers shown on our site are selected based on a combination of market analysis (e.g. mentions in media, search results) and their rankings on google. Companies are then ranked according to client reviews and our own manual review of the features, benefits, and overviews of each software provider as well as customer reviews.
Though our site does not publish or quote specific reviews from clients regarding each software provider, our rankings consider both positive and negative client reviews. Companies ranked higher on our site have less negative comments from users, while lower ranked software providers have more. These comments are not mentioned in our overviews as they are meant to be factual descriptions of the software, but the way that we compare and rank each software does consider the benefits and drawbacks of each provider as reported by customers.
Price optimization software providers mentioned and ranked by us can personally contact us through our provided contact information if they feel like any information given on our site about their software is incorrect and needs fixing. That being said, no direct comments can be made by users or vendors on our site, so they cannot comment directly on their own review pages. In order to avoid bias, we maintain full control over each software ranking and overview so companies cannot change their own rankings or descriptions.