With Dynamic Pricing a company is much more flexible in offering the right price to the right customer, at the right time, for the right product. Examples of advantages of Dynamic Pricing are:
- Upselling: use low prices to attract customers, and sell additional high margin products and/or services
- Specific prices for targeted customer segments: e.g. different prices for households and businesses
- Specific prices for specific sales channels: e.g. different prices in online and offline retail
- Specific prices for specific periods: e.g. different prices at the weekend and weekdays
- Optimal discounting strategies: to make sure that all inventory is sold
This flexibility in offering prices allows companies to increase:
- Margins
- Revenues
- Market share
- Utilization
Below the different benefits are explained in detail.
