We want to use AI to analyze our historical project data and competitor rates to optimize our pricing strategy. How do we do this without overcomplicating our core pricing model on our V/TO®?

Question

Tyler Smith · Accepted Answer

The danger of using AI for pricing is that it can easily lead to hyper-complex, dynamic pricing models that confuse your sales team and alienate your customers. Your pricing model must remain simple enough to fit on your V/TO® so your team can pitch it with absolute confidence. Use the AI to do the heavy analytical lifting behind the scenes. Let it query your historical project files, labor logs, and materials costs to identify which types of projects consistently result in high margins and which ones bleed cash. Once the AI identifies these patterns, use that data to refine your flat-rate pricing or your standardized packaging. Do not use it to create a fluctuating, dynamic pricing system that changes daily. By keeping the backend analysis complex but the frontend pricing simple, you protect your sales conversion rates while ensuring your margins remain healthy. Your leadership team can then make quarterly adjustments to your standard pricing sheet during your quarterly meetings based on hard, AI-analyzed cost data.