Optimal Price Model · Price Elasticity Testing

Your picked a price. Statistics will pick a better one.

The Optimal Price Model runs continuous A/B tests between two price levels. No more guessing the margin sweet spot.

Contact Sales

See how it works

90% confidence

statistical threshold before any price moves

200+ sales/mo

ideal for high-volume, fast-moving SKUs

14–60 days

automated test cycles, evaluated and re-launched

How the Optimal Price algorithm works

A continuous testing engine that uses real impressions and sales to find and defend the price that maximizes your margin.

Step 1
Pick a group or a product

Choose a single high-volume SKU or a group of related products. Products in the same group move together, so you discover the optimal margin level for the whole set at once.

Step 2
Price test is launched

Each test compares two price levels. For example, a 10% and a 15% markup over purchase cost. The two prices alternate daily so impressions and sales are collected for both variants under fair conditions.

Step 3
Data is collected

Disivo tracks product detail views (impressions) and orders for each variant. Tests need a minimum of 14 days and enough orders before they can be evaluated.

Step 4
Statistical evaluation

When the criteria are met, the model runs a statistical evaluation. A variant only wins if it clears 90% confidence. If neither side wins by day 60, the test is restarted which is usually a hint to revisit the setup.

Step 5
Next test launches automatically

If the higher price won, the next test pits it against an even higher one. If the lower price won, the model probes lower still. Over time, prices settle on an optimal value and keep being re-validated as demand shifts.

Why testing beats opinion

Most pricing decisions are anchored on cost rules or what a competitor did last quarter. The Optimal Price Model replaces opinion with evidence: two price levels, real impressions, real orders, and a statistical outcome. If a higher price wins, price climbs. If a lower price wins, you test a lower one. Either way, your total profit improves.

Built for high-volume SKUs

Designed for products with 200+ sales per month. With enough traffic, statistical testing reliably finds a margin you didn't know you had.

Decisions backed by 90% confidence

Every change is the result of a completed test where one variant clearly outperformed the other on impressions-to-sales conversion.

Continuous re-optimization

Customer behavior, competition and seasonality shift over time. The model never stops testing, so the optimal price keeps tracking the market instead of going stale.

Four settings. Full control.

Configure the Optimal Price Model once. Each parameter shapes how aggressively or carefully the algorithm searches for the margin sweet spot and how it adapts as the market moves.

Product selection

Decide which products are tested together. A group can be a single hero SKU or a cluster of related products that should share one optimal margin level. Products in the same group move in sync.

💡 One SKU for hero products, Groups for ranges

Test duration window

Tests run a minimum of 14 days (so confidence isn't called too early) and a maximum of 60 days. If no winner emerges by day 60, the test restarts and is a signal to revisit setup.

Long-running tests = signal to retune

Variant interval

The gap between the two price levels in each test, measured in percentage points. Smaller intervals find finer optimal point but need more data.

💡 5 percentage points is a balanced default

Starting point

The reference value the model anchors on (typically purchase cost or RRP) plus an initial markup percentage. The first test launches around this anchor.

💡 Usually cost + your current markup is a safe start

One thing to watch

The Optimal Price Model needs enough volume to reach 90% confidence. For low-volume SKUs (under ~200 sales/month), tests will keep timing out at day 60. Those products are a better fit for the Price Jumps model, which doesn't depend on large statistical samples.

"We always wanted to test different prices for our products, but manual repricing was too tedious. After the first month of automated repricing, the results were amazing."

Jakub Kocourek

Product manager, Gastrozone

Let's chat!

What happens next? Our pricing consultant will get in touch with you to discuss your specific needs. We usually respond within one business day.

Explore Disivo pricing models

Optimal Price is just one tool in the toolbox. Disivo offers multiple pricing models to cover every scenario in your catalog.

Clear dead stock without killing margins

Automate markdowns with controlled step-down pricing. The algorithm finds the highest price a product will sell at, holds when it works, and never drops below your floor.

Step-down price discovery
Price floor protection

Automatic hold on working prices
Transaction-based evaluation

Explore Markdown model

Stay competitive with a immediate market price decisions

Automatically track competitor prices and adjust yours based on the rules you define. Stay competitive on key products while protecting margins where you can.

Real-time competitor monitoring
Category-level strategies

Rule-based repricing in your control
Margin guardrails

Explore Competitor Based Pricing

Smart Price Elasticity Testing

The Optimal Price Model uses price elasticity testing to discover, maintain, and continuously validate the best margin level. It runs automated A/B tests comparing two price tiers, collects impression and sales data, and statistically determines which performs better and then iterates.

Automated A/B price testing
Best for high-volume products (200+ sales/month)

Statistical evaluation at 90% confidence
Continuous re-optimization over time

Optimize prices based on real demand signals

The Margin Maximization Automation ("Price Jumps") model adjusts prices up or down based on actual sales performance. If a product sells well, the price goes up. If it doesn't, it comes down automatically.

Bi-directional price optimization
Works with low sales volumes

Demand-responsive adjustments
Independent evaluation per product

Explore Margin Maximization

Manufacturers: Monitor Reseller Prices

As a manufacturer or distributor, track the prices your resellers are actually selling at to ensure brand consistency and support channel relationships.