What is price optimization and when is it useful?

Price optimization is a data‑driven process that pinpoints the rate at which profit, revenue, or another chosen metric reaches its maximum. It models how customers respond to different prices, tests scenarios, and recommends the sweet spot for each segment or channel. You’ll find it most useful when margins are thin, market conditions change fast, or your catalog is too large for manual tweaking. Moreover, optimization shines in subscription models, where a small change in monthly fees compounds over the years.