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Revenue

The price buyers will accept

Sena adds the two figures the history omits: the price buyers accept and the point they move away.

  • 190+ countries
  • 5M+ consumer network
  • 250+ integrations
The problem

Where the price is guessed

Price optimization finds the price a product earns most at, across the range of prices buyers would accept. Three shortcuts leave the second half of that sentence unmeasured.

01

Fitted to prices already charged

PRICES TRIED UNTESTED STAYS DARK DECISIONS ALREADY TAKEN STATED ACCEPTANCE THE OPTIMUM OFTEN SITS OUT HERE

The curve gets built from historical volume at historical prices. Those prices were chosen by the business, so the curve describes decisions already taken.

  • A curve fitted inside the prices tried.
  • The prices left untested stay dark.
02

Cost plus a target margin

UNIT COST + TARGET MARGIN THE CEILING, OPEN A PRICE THAT CLEARS COST UNIT COST + TARGET MARGIN HEADROOM, MEASURED THE PRICE BUYERS WILL FUND

The price comes from unit cost with a margin applied. That method produces a floor and leaves the ceiling open.

  • A price that clears cost.
  • The headroom above it is unclaimed.
03

One optimum for every market

ONE OPTIMUM EIGHT MARKETS A SINGLE PRICE OVERPRICED SOMEWHERE, UNDERPRICED ELSEWHERE A BAND PER MARKET THE MARKET CARRYING THE LOSS, NAMED

The model returns a single price. Acceptance shifts country by country and income band by income band, so one optimum overprices somewhere and underprices somewhere else.

  • One figure covering eight markets.
  • The market carrying the loss left general.
What Sena does for the price

The ceiling, stated

Sena is the decision AI with access to real-world data. It records what buyers paid and asks the same buyers what they would accept, so the curve extends past the prices the business has already charged.

Both ends

The accepted band

Buyers state the price they would pay and the price at which they move to something else, so the range is measured at both ends.

  • The band, per market.
  • The switching point, dated.
By segment

Sensitivity by segment

Acceptance splits by market and by buyer group, so a single figure resolves into the groups behind it.

  • Where acceptance is widest.
  • Where a small rise moves buyers.
The check

Checked against the receipt

Stated acceptance sits beside what the same buyers paid, so intention reads against a recorded purchase.

  • Stated price against paid price.
  • Where the two diverge.
The method

Price optimization

Price optimization finds the price at which a product earns the most, given what it costs to make and what buyers will pay for it. The cost side is knowable from inside the business. The acceptance side sits beyond it, and that is the half most models estimate.

Two halves, one answer

HalfWhere it comes fromHow it is usually handled
Cost and volumeThe ledger, the plant, the contract.Known to the decimal.
What buyers acceptThe market, one buyer at a time.Estimated from past volume.

A demand curve fitted to historical sales can only describe prices the business has already charged. If a product has sold between two figures for three years, the curve is confident between those two figures and speculative everywhere else. The optimum frequently sits beyond the tested range, which is the part the history leaves open.

Pricing optimization in practice

Four methods are in general use, and they differ in what they can see.

Method 01

Cost-plus

Unit cost with a target margin applied. Produces a floor, fast, and leaves the buyer out of it.

Method 02

Competitor-anchored

Price set against what rivals charge. Moves with the market and inherits its mistakes.

Method 03

Historical elasticity

A curve fitted to past volume at past prices. Reliable inside the tested range and speculative outside it.

Method 04

Stated acceptance against recorded purchase

Ask category buyers what they would pay and where they would move, then set it beside what they paid. The curve extends past the prices already charged.

Price sensitivity analysis

Price sensitivity analysis measures how far a price can move before buyers move. It returns three figures per market: the price treated as too cheap to trust, the price treated as fair, and the price at which buyers leave.

Four inputs behind the price

Four collected inputs set the acceptance side, applied per market.

InputWhat it answers
Stated preferenceThe price a buyer accepts, the price they treat as too high, and where they move.
ReceiptsWhat the same buyer paid in the end, dated, so stated meets the record.
Store capturesWhat the product listed for that week, and what sat beside it.
Geo-verified photosThe shelf price and the promotion running against it, placed and timed.
THE MODEL CONFIDENT ON COST · ESTIMATING ACCEPTANCE 01 · ABOVE THE TESTED RANGE 02 · WHO LEAVES, AND WHERE THEY GO 03 · WHICH MARKET IT IS FOR
01

What a pricing model omits

Three questions sit outside the model, and each one moves the answer it returns. A curve fitted to three years of one price band carries weight only inside it. A volume figure counts the buyers lost and leaves open which rival received them.

One price across eight markets is eight different decisions wearing one figure.

Direct from real consumers

Shared under explicit consent

Real people share what they buy and prefer, under explicit consent. Sena captures it directly at the source, so every figure traces back to where it came from whenever a number comes under question.

Real people, real consent Zero-party data straight from the source Traceable and verifiable
Sena for a price point

Ask Sena the point

Stated acceptance and the receipt behind it arrive from the same buyers, and every figure carries the market and the day.

4 sources · captures dated this cycle · Open the captures ↗ · figures in this exchange are illustrative
The rangeMeasured both ends

The band at both ends

Buyers name the price they accept and the price they leave at, so the decision runs against a range.

Floor and ceiling
The costOf a rise, priced

Who moves, and to what

The competing line buyers name puts a price on the volume a rise would cost.

The named alternative
The ceilingCarries a check

Stated against recorded

What buyers say they would pay sits next to what they paid, so a stated ceiling carries a check.

Intention and record
How Sena reaches the answer

What the price read uses

Acceptance is the half that decides the answer

A price model is confident about cost and estimating about acceptance. Sena builds every figure from real-world signals captured when the question needs it, from a buyer naming the price they would leave at through to the receipt showing what they paid.

Consumer activity

Records what buyers paid for this line and for the lines they consider against it, so trading down shows up in the next read.

Computer vision

Reads the shelf price and the promotion running against it off images captured in real outlets, so the price a buyer faced is the price in the read.

Zero-party data

Signal arrives from the consumer network under explicit consent. The price a buyer would leave at comes from that buyer.

Connect the team's systems

Unit cost, volume history, listing records, and margin targets join over 250+ integrations, so the cost half meets the acceptance half.

Trace every answer

Every figure holds its market and its capture date, so a price decision opens back onto the buyers who set the band.

From files to databases

Past price files, elasticity records, and volume histories, covering every cycle the line has been scanned in.

Who owns it

Who decides the price

Four teams read the same band, and each one needs a different cut of it before they can commit.

Pricing

The price point. Needs the accepted band and the switching point, per market.

Revenue management

The price within the range. Needs this point read against the other packs.

Finance

The margin. Needs the headroom above cost that buyers will fund.

Category teams

The shelf position. Needs what the line was priced against the week it sold.

By industry

Price points across industries

The same band, read against the alternative each category actually moves to.

01

CPG and retail

The shelf price buyers accept, and the competing item they move to above it.

02

Consumer tech

The specification and price pairing buyers fund against the tier below it.

03

Pharmacy and health

The counter price that holds, and the own-label point buyers switch at.

04

Telecom

The monthly figure buyers accept before moving down a tier.

The mechanism

Consumer to point, three steps

One mechanism, applied per market and per category. Each step is documented, which is what carries a price decision through a margin review.

Step 01 · Ask

Ask

Real contributors share what they buy and pay under explicit consent, naming the price they accept and the price they would leave at.

  • Explicit consent on every signal
  • Both ends of the range named
Step 02 · Band

Band

Sena reports the accepted range per market, with the competing line buyers name at the top of it.

  • The range, per market
  • The competing line at the top
Step 03 · Check

Check

The stated band runs against recorded purchases from the same buyers, so the ceiling carries evidence behind it.

  • The same buyers, both figures
  • The ceiling carries evidence
What changes

Fitted and asked

Most price models are built from costs the business knows exactly and acceptance it estimates from its own sales history, so the curve is confident only where the price has already been. Sena measures the other half.

Capability areaTypical setupSena
The demand curveFitted to past volume at past prices.Extended by what buyers say they accept.
Above the tested rangeExtrapolated.Stated by buyers, with the switching point.
Who leavesA volume figure.Named buyers, with the line they move to.
Market resolutionOne optimum for the line.A band per market, since the ceiling differs by country.
The shelf priceTaken from the list file.Photographed in the outlet, dated.
Stated against paidHeld in separate systems.Read together, with the underlying records held by the provider.
Evidence in a reviewA curve and a confidence interval.Open any band onto the buyers who set it.
Use cases

Where the point lands

Three situations where a stated band changes the price.

01 The riseTested first

Price a rise early

Run a proposed increase against the accepted band per market, so the markets that absorb it separate from the markets that resist.

See pricing intelligence →
02 The entrySet on today

Price a new entry

Set the launch price against what buyers pay for the line they use today, and the price they say they would move at.

See new product launch validation →
03 Trading downRead first

Find who trades down

Read which buyers moved to a cheaper line in the category and what they paid, before the next price decision.

See consumer purchase drivers →
See it on one line

Test one price live

The walkthrough takes one line in one market, builds the accepted band from what buyers state, and runs a proposed price against it while the team watches.

What a walkthrough covers

  1. 01The accepted band and the switching point
  2. 02The competing line buyers name above it
  3. 03What the same buyers paid, dated
  4. 04Where stated acceptance and recorded purchase diverge

Talk to the Rwazi team

Tell us the line and the market, and we will build the band.

FAQ

Price optimization questions

01 What is price optimization?
Price optimization finds the price at which a product earns the most, given what it costs and what buyers will pay. The cost half is known from inside the business, and the acceptance half sits beyond it. Measuring acceptance directly is what separates an optimum from a curve fitted to prices already charged.
02 How to calculate the optimal price?
Two figures are needed: unit cost and the demand at each candidate price. Cost comes from the ledger. Demand comes from asking category buyers what they accept and where they move, then reading it against what they paid. Multiply expected volume by margin at each price and the highest product is the optimum for that market.
03 How to determine the optimal price point?
Start with the band, ahead of a single number. Measure the price buyers treat as too cheap, the price they treat as fair, and the price at which they leave. The optimum sits inside that band, and where it sits depends on whether the line is holding volume or taking margin. Both are valid, in different markets.
04 How to find the optimal price given a demand function?
Set marginal revenue equal to marginal cost and solve for the price. The method is settled and the difficulty is the demand function, which is normally fitted to volumes at prices the business already charged. A function built from stated acceptance covers prices outside that history, which is where the optimum often sits.
05 What is pricing optimization?
Pricing optimization is the same discipline named for the practice. It covers the recurring work of setting and revising prices across a range: which price each line carries, when it moves, and what a promotion does to the ones around it. Price optimization names the answer, pricing optimization names the process.
06 What is price sensitivity?
Price sensitivity is how much demand moves when a price moves. High sensitivity means a small rise loses buyers quickly, usually where close substitutes exist and switching is easy. Low sensitivity means a price can move with little volume lost, usually where the product is bought on repeat, cheap relative to income, or hard to replace.
07 What is price sensitivity in marketing?
In marketing it describes how a price change lands with the buyer, ahead of how it moves volume. The same rise reads as fair on a product with a clear reason for it and as opportunistic where the reason is missing. Sensitivity measured by asking buyers returns the reason alongside the figure, which is what makes it actionable.
08 How to measure price sensitivity?
Ask category buyers four prices for the same product: too cheap to trust, cheap, expensive, and too expensive to consider. The answers plot into a band with a floor and a ceiling. Reading that band against what the same buyers paid checks the stated ceiling against a recorded purchase, per market.
09 What is the difference between high and low price sensitivity?
High sensitivity means demand falls sharply as the price rises, so the price is close to a ceiling and volume is the thing at risk. Low sensitivity means demand holds as the price rises, so margin is available and the constraint is elsewhere. The same product is frequently high in one market and low in another.