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:
- Start with the SSP (Suggested Selling Price).
- Apply the threshold adjustment.
- 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.