The practice of dynamic pricing is not a new concept. Some see the origin in the airline Industry where its use started in the 1980s. But even beforehand it was common practice in small grocery stores to discount perishable products like bread over time. At its core, dynamic pricing simply means that a company sells a product at different prices. Share on twitter Twitter Share on linkedin LinkedIn Drivers of… Read More »What is dynamic pricing?
Setting the right price for your product or service is hard. In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity. Share on twitter Twitter Share on linkedin LinkedIn Understanding your product’s price elasticity of demand is… Read More »Price elasticity – the key to optimal prices
When it comes to navigating through pricing, one is faced with two methods: Rule based pricing or machine learning based pricing. Rule-based pricing or rule engines are the traditional way of pricing in retail and online retail. Most online retailers change prices using this methodology. In this case prices are changed according to static formulas. This type of pricing can also be dynamic. For example, a retailer can set the… Read More »Machine learning-based pricing vs. Rules-based