Distributors with thousands of SKUs in their catalogs consistently face the daunting task of accurately setting prices for the products they sell to ensure they are appealing to customers while meeting the business’s financial goals for each item. Despite the significant amounts of data they generate through the buying and selling of products and services, many distributors continue to rely merely on their intuition or collective wisdom when making pricing decisions. Modern AI-powered price optimization tools can help distributors apply data-driven pricing strategies across their entire catalog and significantly increase gross margins. However, the distributor first has to pick a pricing model and move away from legacy models. Below is a quick look at three pricing models available to distributors: the cost-plus model, the price-on-demand model, and the competitive model.