Pricing & promotions

The applied science factory for improving pricing and promotions

Pavo learns how your pricing and promotions work across transactions, margins, and past tests. It finds opportunities, builds the evaluation, and runs experiments to improve incremental margin.

See how Pavo works

Current pricing stack

rules · offers · margin model

Transactions + costs

prices · volumes · margin

Inventory + response

stock · elasticity · churn

Candidate policies

price · offer · audience · timing

Guardrail envelope

margin · fairness · stock · churn

Controlled test

a held-out set of stores

Incremental margin moves

Pavo learns your current pricing stack, reads transactions and inventory response together to propose candidate policies, checks each against your margin and fairness guardrails, tests the survivors on a held-out set of stores, and writes the measured result back.
  • Increase experimentation velocity

    Explore elasticity, targeting, and markdown policies in parallel. Move stronger ideas to controlled tests faster.

  • Increase win rates

    Evaluate candidates across cohorts, uncertainty, and margin floors. Reserve live traffic for the strongest evidence.

  • Force multiplier for your team

    Automate elasticity analysis, incrementality evaluation, and experiment preparation.

How it works

Connect your pricing stack

Connect code, catalog, transactions, costs, inventory, metrics, constraints, and experiment history behind pricing.

Build system understanding

Pavo reconstructs how your production system works. Your team verifies the system book.

System bookArchitectureServices, models, pipelinesMetricsDefinitions and ownersFailure modesWhat breaks, and whenExperimentsPast runs and outcomes

Run applied science projects with Pavo

Give Pavo a metric goal and guardrails. It frames the problem, runs analyses, compares policies, and opens PRs.

Frame the problemBuild hypothesesRun interventionsEvaluate offlineLive A/B test

Capabilities

Applied science judgement

Picking the right problem, the right approach, the right lever

  • Finds where the margin is leaking - which segment, which SKU, and whether it's price, promo, or eligibility
  • Knows whether to fix the elasticity model, the targeting, the discount depth, or the guardrail
  • Grounds it in your own past price tests and demand behaviour, not just what's in the repo
INCREMENTAL MARGIN · EXAMPLE6%PRICEPROMONEWHIGH-LTVREPEATELASTICITYTARGETINGREDEEMER BIASDEPTHGUARDRAILSREDUCE PROMO CANNIBALISATIONFOR REPEAT BUYERSTest: incremental marginTRANSACTIONSPAST EXPERIMENTS

Scientific rigour

Explores widely, and ships only what's proven

  • Compares multiple elasticity and targeting policies against one shared evaluation, instead of betting on one price test
  • Estimates policy value from historical tests and transactions, then reserves live traffic for the strongest candidates
  • Tests incrementality against cannibalisation and seasonality, and checks candidates against approved margin floors
REUSEDREDUCE PROMO CANNIBALISATIONFOR REPEAT BUYERSPOLICY REPLAYLIFT CORRECTEDGUARDRAIL CHECKS301031ELASTICITYUPLIFTSEGMENTATIONOFFER RULESGUARDRAILSNEWHIGH-LTVREPEATBROAD OFFERUPLIFT OFFERBOUNDED UPLIFTSELECTEDBOUNDED UPLIFT OFFEREXAMPLE · READY TO TEST

Knowledge compounds

Every iteration makes the next one cheaper

  • The work itself produces new knowledge - how your segments respond to price, which promos are truly incremental, where discounting stops working
  • Written back to your system book, reviewed by your team, reused next time - it stays with you
  • Your team owns the learnings, so v2 to v3 to v4 gets faster, not just further
01LEARN02RETAIN03REUSEBounded uplift offerEXAMPLE · TESTEDRepeat buyers mostly redeemMargin beats redemption rateBroad offers cannibaliseYOUR SYSTEM BOOKSEGMENT RESPONSEMETRIC CALIBRATIONPOLICY HISTORYTIME TO PROOF · EXAMPLE4wV23wV31wV4KNOWLEDGE REUSED

Use-cases

Illustrative marketplace price-response matrix: three consumer-electronics SKUs across regions show different demand curves within approved price bounds before a product-level experiment.

Our one-size-fits-all price rules leak margin when demand shifts by SKU and market

Pavo compares hierarchical, choice, and causal demand models, calibrates price response with experiments, then measures contribution margin, conversion, and volume within approved price bounds.

Price responseContribution marginConversionVolume
Illustrative food-delivery promotion experiment: a randomized holdout separates orders that would happen anyway from customers whose behaviour changes because of an offer.

We discount customers who would have bought anyway, so campaign lift is not incremental

Pavo compares uplift and causal models for eligibility and discount depth, optimises offers under budget rules, then validates incremental margin in a controlled holdout.

Incremental marginOffer costBudgetRetention
Illustrative fresh-grocery markdown horizon: a late deep discount leaves waste, while staged markdowns balance sell-through, margin, and leftover inventory.

Our markdowns clear too late or too deeply, leaving inventory or giving away margin

Pavo compares rule-based, counterfactual, and multi-period markdown policies, then measures sell-through, realised margin, and leftover inventory across the full selling horizon.

Sell-throughRealised marginLeftover inventoryPrice changes

Security and trust

  • ISO 27001

    Certified

  • SOC 2 Type II

    Compliant

  • Encryption

    Encrypted in transit and at rest, with managed production keys.

  • Access control

    Least-privilege access, enforced with MFA and reviewed quarterly.

  • Data control

    Tenant-segmented, with retention and customer-controlled deletion.

  • Monitoring and response

    Continuously monitored, centrally logged, and ready to respond.

  • Tested and patched

    Independently pen-tested, scanned, and kept current against threats.

  • Resilient by design

    Multi-AZ with backups and a tested continuity and recovery plan.

Full reports, policies, and the complete control list are available on request through the Trust Center.

Start with one pricing decision and one metric. Pavo helps your team understand the system, evaluate better policies, and ship the first team-approved experiment.