Announcing funding, general availability, and the future of dynamic pricing with AI

Posted by Alex on October 9, 2018

I’m very excited to announce that Perfect Price has closed $5.8 million in seed funding, which will enable us to expand our team here in the San Francisco Bay Area as well as a new UK office for our increasingly global footprint; increasingly work with more complicated datasets at larger enterprises; and, most importantly, continue to deliver world-class AI solutions that solve critical business challenges, including pricing.

We’re also announcing the general availability of our dynamic pricing platform, which now includes industry-first supply management technology and many other improvements that we’ve been working on for a long time.

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In the beginning

Youngin and I started Perfect Price with a simple but at that time elusive vision: empower companies to price their goods and services using science rather than guesswork. We wanted to make smart pricing effortless.

Smart companies want to price based on what consumers will pay; but understanding consumer demand and behavior has always been difficult. In the past decade, with the emergence of digital commerce, consumer expectations and demands have changed dramatically. At the same time, data-driven AI has evolved to facilitate new ways of understanding consumers and their preferences.

We saw the transformation firsthand in digital advertising: ad networks with 300 or more experienced ad operations employees were out-maneuvered by Drawbridge, with two ad operations employees and a handful of world-class machine learning engineers. It became clear to us that the data science we worked on while we were Drawbridge (and previously at companies like Microsoft and Twitter) unlocked significant business value.

Since those early days, we’ve learned a lot. We’ve learned what works and what doesn’t; the industries and business models that benefit the most from dynamic pricing; and how to talk about very technical subject matter in a way that clicks with everyone. At first those conversations were hard, but as AI technology becomes more mainstream across industries, executives are increasingly demanding cutting-edge AI to compete. As AI crosses the chasm, executives are becoming less enamoured of far-fetched sci-fi ideas and focusing on applications that can add high value in days or weeks, not years.

Starting any business is a difficult and complicated journey, but we were always confident that our approach would work. Bob Phillips, currently Director of Pricing at Amazon, joined us very early on because he recognized the potential of our approach. And he knows – he wrote not one but two textbooks about price optimization and revenue management. By time we were ready to seek funding, we knew what our ideal customers looked like, their challenges, and how to prove ROI – and we went after them.

Today, Tomorrow and Beyond

Have you ever looked at your phone and wondered, how did anyone survive without text messages or Google Maps? Us, too. In a decade (or less) executives will look at business strategy — particularly pricing and revenue management — and wonder, "How did anyone do that without AI?"

I'm proud that the world-class team we've attracted built the world’s first cloud AI-powered dynamic pricing platform and that Fortune 500 businesses around the world are using it right now with great success.

And while we still have a long road to go before AI is ubiquitous, the conversations are changing quickly. In the face of Amazon, Alibaba, on-demand services, and the sharing economy — all of which already use AI — companies across the board are looking to innovate in order to compete.

Perfect Price works with forward-thinking companies in industries ranging from rental car and airline to sports clubs and gas stations. For any company with large volumes of data, AI is worth serious consideration. I hope you'll start by looking at Perfect Price. And with that conversation, together we can build AI for today, tomorrow, and decades to come.

Alex Shartsis, CEO and Youngin Shin, CTO

 

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Topics: Insider