---
title: Dynamic Pricing Strategies Cheat Sheet
description: dynamic-pricing-strategies-cheat-sheet
---
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# Dynamic Pricing Strategies Cheat Sheet
## Goal: Understand the three Dynamic Pricing strategies in Trellis — Volume, Balanced, and Margin — and when each one should be used.
#### **Volume Plan — *Gain Volume***
**What it is:** A pricing strategy that **lowers prices to increase sales volume**.
**Goal:** Drive **high unit velocity** — more sales, faster.
**When to Use:** Use this plan when **growth matters more than revenue per unit**, such as:
- Launching a new product
- Winning market share
- Clearing overstocked inventory
**Risks:**Enrolling **low-volume or inconsistent products** (e.g., long-tail items) can backfire.
The system may continue reducing the price toward the floor **without driving meaningful additional volume**.
**Best Fit Products:**
- Newly launched items
- Overstocked or underperforming products
- SKUs that need a velocity boost to hit sales goals or clear inventory
**Success Metric:Units sold above forecast**
#### **Balanced Plan — *Gain Revenue***
**What it is:** A strategy that **raises prices carefully** while trying to maintain unit volume.
**Goal:** Increase **Gross Contribution Dollars (GCD)** by lifting prices without hurting sales velocity.
**When to Use:** Ideal for **general catalog products** that have:
- Stable demand
- Consistent sales velocity
- Room for margin optimization without harming volume
**Risks:** Low risk overall.
Negative GCD may occur if the price drops too far while attempting to maintain volume — **rare, but worth monitoring**.
**Best Fit Products:**
- Everyday performers with predictable demand
- SKUs with meaningful pricing upside
**Success Metric:Gross Contribution Dollars**
#### **Margin Plan — *Gain Margin***
**What it is:** A strategy that **raises prices to increase per-unit profitability**, even if that reduces unit sales.
**Goal:** Maximize **margin** over volume.
**When to Use:** Best for products where profitability is more important than growth, such as:
- End-of-life items
- Limited remaining inventory
- SKUs with small remaining allocation where profit extraction matters most
**Risks:** Higher prices may reduce volume and cap total revenue — this is often intentional, but still should be validated.
**Best Fit Products:**
- End-of-life SKUs
- Items with limited inventory where maximizing value per unit is key
**Success Metric:Gross Contribution Dollars**
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