When is the last time you really revisited the assumptions baked into your pricing strategy?
Technology enables much finer control over how you price goods and services, which means you’ll be hearing a lot about “dynamic pricing” in the coming months. Dynamic pricing refers to the practice of updating prices based on current market demand and supply. While yield management, a form of dynamic pricing, has been practiced in industries such as airlines and hotels for years, technology is enabling a wider range of companies to adjust their prices according to market dynamics.
Upstarts and even incumbents can use dynamic pricing strategy to upturn an industry. Some industries may think they’re immune to such developments, and it might seem odd to imagine certain kinds of companies practicing dynamic pricing — seeing bananas sold with an electric price tag changing amount every few minutes would be unusual. Until it’s not.