Can we optimize prices using machine learning? Let’s discuss

  1. You can plug just about anything into a ML model. The trick here is to correctly parametrize and normalize. SO many factors go into a customer decision to buy. Are there acceptable substitutes for cheaper? Is it a commodity? Are competitors running a sale?

  2. I second this, the real challenge is figuring which attributes are correlated and driving price to move in any one direction.

  3. Maybe for spot pricing or developing high level pricing trends. In contract pricing, I see a lot of challenges. Outside of contract pricing, things like do you want to be a preferred supplier and alternatives (immediate and longer term market shifts) matter. Also things like stage of product development and market adoption impact pricing. Short term ML makes sense, long term lots of variables make it tough

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Author: admin