Commerce Decisions
Dynamic Pricing Simulator
Rule-based pricing from demand, inventory, competitor and seasonality — bounded by margin and move-size guardrails.
The Problem
Automated pricing is only acceptable when the business can see which guardrail stopped it from going too far.
How It Works
- Sum adjustments from demand change, days of supply and competitor gap, scaled by seasonality.
- Clamp the move to ±10%.
- Apply the margin floor and optional competitor ceiling, then estimate unit, revenue and stock-risk impact.
Technically Interesting
Constraints are applied in a fixed order and the response lists which one fired, so the output is a rationale rather than a number.
Why It Matters
Pricing logic needs governance. Guardrails and traceability matter more than model sophistication.
Scope & honesty. Coefficients are illustrative, not fitted to data.