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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