Ask the DPC experts: Xenokratis Vartzikos, Business Leader, talks dynamic pricing and why human judgment still matters

Felix Hoffmann: Hi Xenokratis, thanks for joining us for the first ‘Ask the DPC experts’ session! First ice breaker question: we always hear interesting stories from community members about how they got into pricing. What is your story?

Xenokratis: My perspective on pricing was shaped at the most fundamental level: the retail store floor. Starting my career in direct contact with customers gave me an invaluable look at how price influences human behavior, perception and the final decision to buy. It was about the psychology of value. Since my academic studies, I have noticed a recurring strategic gap. In the classic framework of the 4 Marketing Ps, Promotion was almost always the “Hero” receiving the highest budget, attention and creative energy. Pricing, however, was often overlooked or treated as a reactive, administrative task. I became fascinated by the fact that Pricing is actually the most powerful lever for profitability and brand positioning. I decided to focus here because I saw an opportunity to move pricing from the sidelines to the center of Commercial Excellence. My mission was formed then: to treat pricing as the “Hero ” P”, the architectural foundation that ensures all other commercial efforts actually translate into sustainable value.

Felix Hoffmann: You bring with you extensive experience in both B2B sales and B2C pricing. For someone new to the field, do you think it is better to specialize in B2B or B2C pricing strategies?

Xenokratis: The most successful leaders will be those who can cross-pollinate. I advocate for a hybrid approach. The emotional “price psychology”of B2C retail is increasingly relevant to B2B, where user experience now drives procurement. Conversely, the rigorous Value Quantification of B2B is becoming essential for FMCG brands defending their premium status.

Felix Hoffmann: As a follow-on; how will the role of a Pricing Expert change over the next 5 years? Is it moving toward pure data science?

Xenokratis: Actually, I see the opposite happening. As AI commoditizes data analysis, the Pricing Expert must pivot from “Data Cruncher” to “Commercial Architect”. The future of the role is in translation and orchestration. You must be able to translate a complex algorithmic output into a narrative that the Marketing and Sales teams can execute. The job is moving from the back-office spreadsheet to the front-line of team and commercial leadership.

Felix Hoffmann: If the job is moving to the front-line of team leadership, should pricing have dedicated ownership at the leadership level, or is it naturally everyone’s responsibility? What is your take on that?

Xenokratis: If pricing is everyone’s responsibility, it is no one’s responsibility. While every department touches price – Marketing for brand, Purchasing for COGS, Sales for execution – treating it as a shared task leads to consensus-based mediocrity and massive margin leakage. A dedicated pricing leadership is the only way to transform pricing into a proactive growth engine. This leadership acts as the architect who ensures that Category Management, Product Strategy and Sales Operations are aligned.

Felix Hoffmann: Should pricing decisions then be made centrally or closer to the local market, and where does the balance sit?

Xenokratis: The ideal sits at “Centralized Strategy, Localized Execution”. High-level price architecture, brand guardrails, and data infrastructure must be central. This ensures consistency across product portfolios and prevents cross-border arbitrage, especially in B2B SaaS or global FMCG. However, the “last mile” belongs to the local market. Local teams understand competitive intensity and regional consumer nuances that a central algorithm might miss.

Felix Hoffmann: Pricing complexity is however exploding beyond regional differences. What used to mean one webshop is now marketplaces, apps, stores, and more. How has this complexity changed how pricing decisions are made?

Xenokratis: The proliferation of channels – from owned webshops and brand apps to third-party marketplaces (like Amazon or specialized B2B platforms) and brick-and-mortar stores – has fundamentally shifted pricing from tactical execution to a complex Product Portfolio Management challenge. In the past, pricing decisions were often siloed by channel. Today, that approach is a recipe for margin leakage and customer confusion. This complexity demands a move toward integrated Commercial Excellence. We can no longer manage a simple “price list”. Instead, we need to design and manage a cohesive Price Architecture. The fundamental change in decision-making is the shift from attempting price uniformity across channels to achieving strategic price consistency. For instance, in FMCG retail, your price on a quick commerce app – such as Dark Stores’ concepts, Foodora, Glovo, efood Market, Wolt Market etc. – might reflect a convenience premium compared to the physical store shelf. The goal is to ensure that while prices may vary based on channel dynamics (cost-to-serve, competitive intensity, customer intent), they always support the overarching Brand Management strategy. Decisions must be data-driven and algorithmic, yet governed by human-defined strategy to prevent destructive channel conflict where a brand inadvertently competes against itself.

Felix Hoffmann: With the rise of price transparency apps and AI, is ‘Brand Loyalty’ becoming a thing of the past for retailers?

Xenokratis: Transparency kills “lazy pricing”, not loyalty. In both B2C and B2B markets, customers now have the tools to see exactly what they are paying for. This forces us to enhance Value-Based Pricing. If your price is transparent, your value must be even more transparent. The trend is about being the most justifiable choice in the consumer’s synthesis.

Felix Hoffmann: As pricing becomes more automated, how do you ensure a value-based approach? Where does human judgment still matter most?

Xenokratis: Data tells you what is happening, but human judgment tells you why. As we move toward automation, human judgment matters most in strategic context and ethical brand management. Algorithms are excellent at optimizing within historical patterns. However, they lack the commercial intuition to handle single, 1-time events or long-term brand shifts. For example, in B2C retail, an algorithm might suggest a massive price hike during a supply shortage, but a human leader knows that price gouging may destroy brand equity. In B2B SaaS, judgment is required to navigate complex, multi-year relationships where the “value” isn’t just in the license fee, but in the strategic partnership. Automation should be the engine, but human judgment remains the steering wheel.

Felix Hoffmann: A common challenge for retailers is balancing brand equity with dynamic pricing, which is often seen as a “black box”. What are the genuine pros and cons of dynamic pricing for a brand trying to maintain value integrity?

Xenokratis: Dynamic pricing is about agile commercial operations.

• The Pros: It allows for real-time alignment with market demand and competitive intensity. In FMCG retail, it prevents “dead stock” by adjusting to footfall. In B2B SaaS, it allows for “usage-based” scaling that aligns costs with customer value. It captures the “Willingness to Pay” that a static price list misses.
• The Cons: The biggest risk is Brand Erosion. If an algorithm chases the bottom in a price war, it signals that your product is a commodity. For a pricing architect, the goal isn’t just to be dynamic, but to be strategically dynamic within pre-defined guardrails that protect your Brand Management goals.

Felix Hoffmann: Is Dynamic Pricing only for airlines and Amazon, or does it have a place in B2B Services and Consulting?

Xenokratis: The mechanics change, but the logic is universal. In B2C, dynamic pricing is high-frequency and algorithmic. In B2B Consulting or SaaS, it manifests as Value-Based Tiers. For example, pricing a consulting project based on the urgency or complexity of the outcome is a form of dynamic pricing. It’s about moving away from cost-plus toward impact-plus. The future of Commercial Excellence lies in an organization’s ability to flex its price based on the real-time value being delivered to the client, regardless of the sector.

Felix Hoffmann: Thank you, Xenokratis, for taking the time to share your insights with us today. Your perspective on the necessary shift from a “Data Cruncher” to a “Commercial Architect” gives us all a lot to think about as we navigate the future of the industry. Xenokratis, we appreciate you sharing your insights with us today. Your perspective on the vital industry shift from a “Data Cruncher” to a “Commercial Architect” offers valuable food for thought as we look ahead to the future.

That wraps up this edition of Ask the DPC Experts. A huge thank you to Xenokratis Vartzikos for joining us. If you enjoyed this conversation, stay tuned for more interviews with industry leaders from the 7Learnings Dynamic Pricing Community as we continue to explore the strategies shaping the future of pricing.