Price optimization software is a tool that uses data, analytics, and algorithms to help companies set, test, and adjust prices to maximize revenue, margin, or profit.

It analyzes inputs such as historical sales data, customer behavior, price elasticity, competitive pricing, segmentation, and market conditions to recommend optimal price points or ranges. Some platforms also enable scenario modeling, discount guidance, and real-time pricing adjustments.

In B2B, price optimization software is typically used to improve pricing consistency, reduce uncontrolled discounting, and support more data-driven decision-making. It can guide sales teams on deal pricing, help identify where prices are too low or too high, and uncover opportunities for margin improvement across segments.

However, software alone does not solve pricing problems. Its effectiveness depends on having a clear pricing strategy, strong packaging, defined value metrics, and governance. Without these, optimization tools can reinforce poor pricing structures instead of improving them.