How a Women’s Apparel Brand Increased Margins by 12% with Pricing AI

THE RESULTS

12% Increase in Gross Margin after the first pricing cycle

24% Reduction in Over-Discounting, protecting brand value and preserving full-price sell-through

Freed up pricing and planning teams, allowing them to focus on growth strategy, not spreadsheets

Background

A direct-to-consumer women’s fashion brand built on Shopify had grown rapidly over the past two years, offering stylish, affordable apparel across dozens of categories. But with rising customer acquisition costs and shifting shopper behavior, pricing pressure mounted.

The brand was relying on historical discounting patterns, competitor observations, and internal instinct to make pricing decisions—spread across spreadsheets, Slack threads, and last-minute changes. With over 800 SKUs and constant seasonality shifts, this approach became unsustainable.

They needed a scalable solution that could help them react to market dynamics while maintaining brand integrity and profitability.

Industry: Women’s Fashion & Apparel (DTC eCommerce)

Product Implemented: Pricing AI and Competitor AI

Key Goals: Implement data-backed pricing that responds to trends, demand, and competition

The Challenge

Manual pricing workflows and inconsistent markdown logic led to:

Frequent over-discounting that eroded margins
Poor visibility into how pricing impacted demand at the SKU level
Merchandising and marketing teams spending hours tweaking prices rather than focusing on strategy

The brand needed to transition from reactive to data-driven pricing—with better intelligence around elasticity, competitive pressure, and timing.

The Solution

The brand integrated Hypersonix’s ProfitGPT via API to connect with their Shopify store. They activated Pricing AI and Competitor AI modules, which enabled them to:

Automatically ingest sales, inventory, and customer data
Analyze historical price-performance and demand curves
Benchmark against key competitors in real time
Optimize prices based on elasticity, sell-through targets, and brand goals

The Hypersonix Impact

Markdowns became intentional, not reactive
Pricing aligned with demand elasticity and competitive benchmarks
Merchandising and planning teams reclaimed time to focus on campaign innovation and product expansion
Seasonal transitions (e.g., Spring-to-Summer) became smoother, with fewer fire sales