#Dynamic pricing strategy software

#Dynamic pricing strategy software

The software will monitor the competitor’s prices and adjust accordingly. But of course, up to a minimum that makes sense for their profit margins.

Certain events (e.g., increasing the price of roses on Valentine’s Day or doing “Back to School sales”)Īn eCommerce company, for example, can set up dynamic pricing software on their store to adjust prices to be the lowest at any moment.

Competitors’ prices (e.g., fuel industry where different companies compete to have the best prices in the market.).

Level of demand (e.g., hotels charge high prices when the demand for rooms is high, especially during the holiday season.).

It’s an automated process that relies on market data (e.g., how many people want the tickets), company data (e.g., how many seats are available), and machine learning (e.g., what time most people book a ticket) to set an appropriate price. So airlines rake it during these times while providing the best experience to their customers. For example, airline tickets are more expensive over the holidays and weekends because of their high demand. The Basics of Dynamic Pricingĭynamic pricing involves adjusting prices to match the product’s demand. Read on to implement a successful dynamic pricing strategy. This guide covers the importance of dynamic pricing, its different types, and examples of businesses implementing it. An intelligence firm once revealed that Amazon changes its products’ prices more than 2.5 million times in a day.ĭynamic pricing is when a business changes prices based on the product’s (or service’s) demand or supply.