# Integration of AI with Pricing Methods: The Futuristic Management System

In this world and age, in every aspect of a business, a code or an AI system is used, be it to update the inventory, ease the SCM process, or to even facilitate a merger. Only a few would’ve guessed that they need a software to even decide . the price on which they want to sell their products or services. For this to become a possibility, among the B2B industry, the companies started developing B2B SaaS pricing strategy software. SaaS is a software licensing and cloud computing method of delivering software . That is issued to businesses as a service on a subscription basis. SaaS software acts as a platform to compute and data in an already structured machine language interface.

## The Need of Strategy: Drive Better Results

In today’s business environment, you can’t leave such an integral part of a daily functioning business, like Pricing, to chance. A good price structure management can be achieved with and without the SaaS software . but it is evident that AI and machine languages take a load off the manpower and publish excellent results. SaaS software is relatively easy to use because of the development by back-end workers. Their clients, or the end-user, just have to put in the data . they have acquired to make decisions directly affecting the business. Pricing is a very strong contender to have by your side.

### 2 Ps of Marketing Achieved

The pricing software(s) enabled by AI allows companies to not only decide the pricing structure of their goods . But also to target down an optimal promotion strategy to ease the before and after-sales services. So out of the 4 Ps of Marketing, that is, Product, Place, Pricing, and Promotion . this nifty SaaS-based software delivers on the latter Ps. The calculation is done using the predictive models that in turn leverage machine language, AI, and price science to drive better results.

### Evolving SaaS Pricing Methods

Pricing strategies using SaaS has been evolved using three pricing models, these are-

### Cost-Based Pricing

It is the easiest method to start with to receive adequate results to drive business models. This model works on the information of how much a good costs at the development stage. For example, if your goods cost 10$to make, you add a 30% profit margin and sell it for 13$ earning the 3\$ as your profit.

In the long run, this model is not advisable because you’re leaving more money than you’re earning.

### Market-Based Pricing

It’s as simple as its name, to price a product or a service, study the market and the competitors. It’s easier for the end-users as the SaaS software enables them to see the trends in the market . and make a calculated decision.

### Value-Based Pricing

Value-Based here means pricing your product or service based on the value perceived by the customer. It is a very customer-friendly process enabling the companies to get in touch with the end-users.

As it doesn’t cater to the standards set by the competitors or the market . The provider has the leeway to target the customers who want their products.

### Conclusion

In the end, pricing shouldn’t be a negative process alienating the customers . It should enable them to feel like they have a choice. Traditional pricing methods sometimes tend to do the opposite and that can result in the failure of a business. Machine learning and AI are holding our hands taking us into the future in our daily lives . So why not inculcate that in our professional life too?