Here’re four benefits of dynamic pricing strategy
Dynamic pricing refers to the practice of pricing items at a level determined by a particular customer’s perceived ability to pay.
Econsultancy columnist Min-Jee Hwang has shared four major benefits of adopting the dynamic pricing strategy.
Hwang says, “It’s not about pricing lower, it’s about pricing more intelligently. Dynamic pricing means pricing according to internal and external variables, such as stock levels and competitor prices. You need timely, accurate data in order to do it right.
Dynamic pricing benefits
1. Keep up with market trends
Retail moves fast. You may have the best price in the market one moment and be beat by multiple competitors the next. With dynamic pricing, retailers can stay up to date on competitors’ prices, as well as other pricing and inventory trends, and automatically incorporate those variables into new pricing. Imagine manually trying to keep up with market trends and repricing your SKUs based on that data before the market changes. Sounds impossible, doesn’t it?
2. Boost stagnant sales
Are your sales lackluster or do you need to clear inventory faster? Discounts are necessary sometimes, but it’s important to ensure you don’t price too low, or too high”.
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