The Challenge

Dr.Max faced the challenge of replacing its current dynamic pricing solution, which lacked the ability to take into account key factors such as competitor pricing, market share and product characteristics. A major technical hurdle was low price volatility - historically only a few price points per product have been observed. As a result, traditional models tend to undervalue price as a key factor and struggle with predictions for untested price points. As a result, they may exhibit non-monotonicity problems or incorrectly assume constant demand even at higher prices, making accurate pricing decisions difficult.