Audience: Small-mid D2C founders/operators

Overview: Stop training customers to wait for discounts. Build a pricing system that protects contribution margin while lifting AOV and repeat rate using AI strategically and tests your finance lead will trust.

Diagnose Before Discount

• Pull: product margins (incl. returns/fulfillment/fees),
• SKU velocity/inventory, return rates, cohort health (first-time vs repeat,
• LTV:CAC).
• Respect MAP policies and channel parity.

Smart Pricing System (4 Building Blocks)

1. Floors: minimum margin thresholds by SKU/category
2. Fences: who qualifies (VIP tier, channel, geo, first-time, subscription)
3. Bundles: raise effective margin without cutting list price
4. Tests: A/B/n with guardrails and holdouts

Where AI Helps

• Basket affinity analysis for bundle suggestions
• RFM segment scoring for offer timing
• Elasticity estimation from past tests
• Profit-aware optimization (maximize margin, not clicks) Limits: MAP compliance, fairness, human approval, audit logs

Offer Types That Protect Margin

• Bundles: mix hero SKU with high-margin accessories; "build your kit" with tiered savings
• Thresholds: free shipping/gift above AOV-plus threshold
• Non-price: loyalty points, early access, extended warranty
• Subscription.

Bundling Playbook

• Start with top 20 baskets and co-purchase pairs.
• Show clear "compare separately" value.
• Pair overstock with high-demand items.
• Surface "You're $X away from free shipping" in cart.

Testing Framework

• A/B/n or bandit tests; measure profit per session.
• Run to stable reads; track refund rate, CSAT, support tickets, coupon leakage,
• MAP violations. Keep control groups; measure 60-day repeat impact.

Prevent Promo Addiction

• Key notes to do.

Channel & Compliance

• Distinct SKUs/bundles on marketplaces vs D2C.
• Document MAP constraints; "compare at" prices must be truthful.
• Mind tax treatment and subscription notice requirements.

KPIs

• Contribution margin per order/session, AOV, attach rate,
• LTV:CAC by cohort, repeat rate, refund rate, VIP mix.

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Connect with Us:

• X: ⁠Leo Sadeq⁠
• LinkedIn: ⁠Leo Sadeq⁠
• Want to 2X-5X your ROI in 90 days? ⁠Ascend AI⁠