Nuitee Managed (Dynamic) Pricing

Let the market drive your prices

Dynamic markup uses the Suggested Selling Price (SSP) as a reference to intelligently adjust your markup between a floor and ceiling. When the SSP is significantly above the base rate, the algorithm increases your markup to capture more margin — while staying competitive.

Nuitee Managed (Dynamic) Pricing Model

The Nuitee Managed (Dynamic) Pricing pricing model works in three steps:

  1. Start with the SSP (Suggested Selling Price).
  2. Apply the threshold adjustment.
  3. Clamp the result between the configured floor and ceiling.

Step 1: Apply the threshold

The threshold is simply a percentage adjustment to the SSP.

  • -30% = sell at 30% below the SSP.
  • +10% = sell at 10% above the SSP.
  • 0% = sell exactly at the SSP.

For example, if the SSP is $200:

  • -30% → $140
  • 0% → $200
  • +15% → $230

At this point we have a candidate selling price.

Step 2: Apply the floor and ceiling

The floor and ceiling are safety rails based on the net rate, not the SSP.

  • Floor = Never sell for less than Net + X%.
  • Ceiling = Never sell for more than Net + X%.

Examples

Let's look at a few examples to see how this plays out.

Example 1 – Ceiling applies

  • Net Rate: $100
  • SSP: $200
  • Threshold: -30% → Candidate price = $140
  • Ceiling: 20%

Since the ceiling limits us to Net + 20%, the maximum selling price is:

$100 × 1.20 = $120

Final selling price: $120

Example 2 – Floor applies

  • Net Rate: $150
  • SSP: $200
  • Threshold: -30% → Candidate price = $140
  • Floor: 5%

The candidate price would actually lose money because it is below the net rate.

The floor requires us to charge at least:

$150 × 1.05 = $157.50

Final selling price: $157.50

Example 3 – No adjustment needed

  • Net Rate: $170
  • SSP: $200
  • Threshold: -10% → Candidate price = $180
  • Floor: 5% → Minimum = $178.50
  • Ceiling: 20% → Maximum = $204

Since $180 falls between the floor and ceiling, no further adjustment is needed.

Final selling price: $180

Conclusion

The important thing to remember is that the threshold determines the target selling price, while the floor and ceiling ensure that target stays within acceptable commercial limits.


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