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Guidelines for Setting up AI-Based Pricing with Quicklizard

Updated

AI-Pricing Setup Guidelines

To leverage Quicklizard’s AI-based pricing, follow the below guidelines to enable Quicklizard integration and establish the pricing policy properly.

 

 

1. Integration:

1.1 Auto-accept price recommendations via API using these end-points:

/api/v3/recommendations/accepted - Get accepted recommendations only

/api/v3/recommendations/all - Get all recommendations

 

📝 The frequency of calling these API functions is per the CPD (Cycles Per Day) rate. E.g., once a day, and should be in complete sync with the recommendation acceptance process.

 

1.2. Auto-updating the shelf price: via API after the recommendation was accepted/overridden using the following end-point:

/api/v3/products/update

 

📝 It’s highly recommended to make this API call immediately after updating the ERP system, which updates the shelf price consumers see.

 

1.3 Real-Time analytics updates: should be passed in real-time using Quicklizard’s SDK Server To Server:

http://help.quicklizard.com/sdk/v3/integrations/s2s.html

 

📝 These calls should be asynchronous to any sales critical path.

 

2. Historical Data

Quicklizard recommends running strategies in the system for at least 3 months before enabling the AI mechanism. In some cases, using a bespoke solution, historical data can be used to train the AI. Quicklizard will require the following data to learn past market behavior. Ideally, we will have two years' worth of data of:

 

2.1 Sales data

Used to calculate elasticity and provide the AI an overall better starting point. The file should contain the following fields:

  • Date

  • Shelf price

  • Amount of units sold

  • Revenue

  • Profit

  • Views

2.2 Unsold units

The Shelf prices of products that were not sold. The file should contain the following fields:

  • SKU

  • Date

  • Shelf price

 

3. Pricing Policies:

The best practice for enabling AI-based pricing is with the following parameters:

 

One-time setup:

  1. Pricing frequency - at least once a day.

  2. Mandatory attributes: shelf price, cost, inventory.

  3. Minimum price limits - Quicklizard AI pricing strategies must have minimum limits.

  4. Target Margin (Optional) - Set a target margin per product

  5. Replenish date - highly recommended to update Quicklizard on an ongoing basis. If not available, Quicklizard will treat the inventory as endless.

  6. Competitive data consistency - Competitive data should be available at all times.

  7. Use of the AI algorithm consistently - when a product is associated with an AI strategy, the strategy should use it constantly and not on and off (e.g., use it for two days, then a different rule or campaign, then back to AI).

 

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