What are the advantages of Dynamic Pricing?

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.

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