SPARANDE

How Margin Optimizer works

Margin Optimizer works in four steps: it reads your prices and costs, checks each variant against your margin rules, explains what it found, and changes a price in Shopify only when you confirm.

AI suggests. Deterministic maths decides.

AI can only put forward a candidate price and write the plain-English explanation. Whether a price is safe is always decided by deterministic, quantitative mathematics, tested against your cost, your target margin and your price-change limits, so the same inputs always give the same answer.

  • AI only suggests a candidate price. AI never sets a price
  • Deterministic, quantitative mathematics decides every price
  • Nothing reprices until you confirm it, and each change can be rolled back

The four steps

  1. The appPrices and costs are read
  2. MathsMaths checks every price
  3. AIAI explains the maths
  4. YouYou confirm and launch
  • The app
  • AI only suggests
  • Maths decides
  • You approve
AI only suggests. Deterministic, quantitative mathematics decides. Each numbered step is explained below.

  1. Read

    After install, Margin Optimizer syncs your products, variants, prices, costs per item and recent orders from Shopify. It keeps them up to date and re-checks at least once a day.

  2. Check

    Each variant with a cost is compared with your target margin and your price-change limits. The calculation is deterministic, so the same inputs always give the same answer. AI can suggest an extra candidate price, and the same calculation tests it.

  3. Explain

    Each finding shows the figures behind it, and Explain the maths puts them into plain English. The explanation may only use figures the calculation produced.

  4. Launch

    You confirm a price, Margin Optimizer updates it in Shopify, records the launch and tracks the orders that follow.

Where AI is used, and where it is not

Recommendations come from the calculation, not from AI. AI can put forward an extra candidate price, which the same calculation then tests against your cost, your target margin and your limits; a candidate that fails is shown as failing, with the reason. AI also writes the plain-English explanations.

AI processing runs on Microsoft Azure OpenAI Service. It receives product and pricing data, not customer names, contact details or payment details, and inputs are not used to train the underlying models.

What you need

  • A Shopify store.
  • A cost per item on the products you want checked. Products without a cost are listed so you can add one.
  • Nothing else: no spreadsheet upload, no separate account and no theme changes.

Read next: Margin Optimizer capabilities, Margin Optimizer faq, Margin Optimizer privacy and security.

Margin Optimizer pricing