Estimating the market price
What is price prediction?
Determining the prices for products and services is an exercise critical to the success of selling. Price prediction models deliver an overview of the prices accepted by the market. Additionally, they provide a company with access to which features drive each product’s price or service.
3 facts about the model
Price prediction as a standard model is a fast track to AI model implementation.
The model uses product and service data to make price predictions.
The model enables you to assign the right price for a product or service in the marketplace.
2021.AI predicts price levels of products, services, or combinations by using a supervised algorithm. The mathematical model is trained on a data set, describing products and services, together with the listed prices for them. The model stores the product, service, or combination associated with a specific price level, and the descriptive variables most likely to drive the price.
The business outcome
Using the Grace Standard Model for price prediction, the company gets an overview of which price might be accepted by the market, based on the product- or service features. With this information, the company can direct its product development efforts and make price decisions. Furthermore, the company gets insight into what enables a product to get a higher price tag in the market. With these insights, the pricing and product development team can change features and prices to achieve a better product-market fit.
Interested in taking AI into production?
If you think this model would be relevant for your organization go-ahead and book a demo! We would love to help you get started. Otherwise, you can download our Grace Enterprise AI Platform brochure for more information.