Profit Potential: How a Sustainable Apparel Brand Lifted Margins by 12% Using Pricing AI

The Background

Coalatree, a brand known for eco-conscious, adventure-ready apparel, faced rising challenges in a dynamic market. With fast-changing demand, frequent promotions, and volatile competitor pricing, their static pricing approach—built on spreadsheets and manual updates—was no longer sustainable. Margin pressures and inconsistent markdowns were eroding profitability and threatening the brand’s premium positioning.

Industry: Sustainable Apparel

Solution Implemented: Pricing AI

Key Goals: Improve pricing intelligence, eliminate over-discounting, and preserve premium positioning.

Inconsistent pricing. Manual workflows. Missed margin opportunities.

Coalatree’s flat pricing approach couldn’t keep pace with seasonal demand shifts, inventory fluctuations, and competitive activity. The team often found themselves reacting too slowly to market changes, resulting in over-discounting, inventory imbalances, and reduced profitability—especially across core product lines like hoodies, outerwear, and limited-edition items.

Elasticity-informed, category-specific pricing strategies powered by AI.

Coalatree adopted Hypersonix Pricing AI to bring automation, intelligence, and agility to its pricing process. With real-time insights and AI-driven recommendations, the company could:

• Automatically adjust prices based on demand elasticity, seasonality, and inventory levels.
• Optimize markdowns to clear slower-moving inventory while protecting margin.
• Tailor pricing strategies for evergreen vs. limited-run product lines.

This shift allowed the team to move from reactive decisions to a proactive, profit-first pricing strategy while staying true to their sustainable brand promise.

The Hypersonix Impact

Within the first full pricing cycle, Coalatree saw a 12% lift in gross margins—driven by better pricing alignment across categories.

By optimizing markdowns with Hypersonix AI, Coalatree was able to reduce unnecessary discounts while maintaining sell-through and brand equity.

Pricing automation freed up merchandising and planning teams, enabling them to focus on strategic product decisions instead of manual price adjustments.