How a Health and Wellness Retailer Cut Over-Discounting with AI Pricing Tool and AI for Promotions

The Background

A regional health and wellness retailer with multiple locations and an online store was competing against big marketplaces and national chains. Pricing for vitamins, supplements, personal care and wellness bundles was updated manually, often based on intuition and gut-feeling. As supplier costs increased and discounting became more aggressive, the team struggled to keep prices competitive without sacrificing profitability. They adopted Hypersonix Pricing AI and Promo AI to protect margins, improve promotion ROI, and reduce manual work.

Industry: Health and Wellness Retail

Product Implemented: Pricing AI, Promo AI

Goal: Keep everyday pricing competitive on high-visibility wellness products while improving gross margin and running profitable promotions with less manual effort.

Heavy discounting and rising price sensitivity

• Pricing and promotions were managed in spreadsheets, with limited ability to predict margin impact.
• Best-selling items like multivitamins, protein powders and immunity support supplements were frequently discounted too deeply, shrinking gross margin.
• Promotions were repeated because they were familiar, not because they were proven to be profitable.
• The team lacked a clear way to compare everyday price vs promotional price outcomes across stores and ecommerce.

AI-driven pricing and promotion optimization at SKU level

• Delivered SKU-level pricing recommendations based on cost movement, demand signals and target margins.
• Applied elasticity-aware models to identify where pricing could be adjusted safely, and where pricing needed to stay sharp.

• Supported promotion planning with scenario testing of discount depth and timing.
• Predicted expected outcomes such as revenue lift and gross margin impact before launch.

The Hypersonix Impact

• Shifted from reactive discounting to disciplined pricing that protected margin.
• Promotions became more targeted, with fewer blanket discounts.
• Teams spent less time on manual updates and more time improving merchandising and customer experience.