The software is designed to let companies quickly set prices based on such factors as historical information, predictions of a customer's behavior, demand, and projected margins. Three packages are in the suite, each available separately: Dynamic Pricing, Target Pricing, and Promotion Pricing.

"Now, as the Internet becomes an increasingly vital component of companies' business strategies, we have extended our pricing and revenue-management technologies to help E-businesses increase profits and enhance customer relationships," says Tom Madison, president and CEO of Talus.

Dynamic Pricing is designed for business settings in which prices can change quickly in response to market conditions. Promotion Pricing predicts customer response to incentives, then allocates promotions and incentives in order to achieve the desired results. Target Pricing predicts a customer's response to an offer that is developed based on two factors: the probability of winning a contract and the probability of maximizing company profits. Target Pricing uses factors such as price, price sensitivity, and competition to come up with the recommended prices.

"The Web is really the ultimate medium to begin to track a customer's profitability," says Bob Chatham, senior analyst at Forrester Research. "For now, Talus gives an advantage."

Target Pricing starts at around $250,000, and Promotion Pricing starts at about $500,000. The price of Dynamic Pricing primarily involves a fee on each transaction, but can include an up-front fee that starts at about $250,000.