Surprising Industries that use Dynamic Pricing

As dynamic pricing has proven itself over time, we are starting to see the concept push its way into new industries

Share

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on print

Dynamic pricing has been used for years in wholesale electronics equipment, online travel agencies, and ecommerce retail sites. Sellers in these areas have seen their profit margins improve as they matched their pricing to meet demand. Prices for all these industries have been a tool used to maximize profits, spur sales of low-selling or out-of-season merchandise, and ensure that supply is capable of meeting demand.

As dynamic pricing has proven itself over time, we are starting to see the concept push its way into new industries. Businesses looking for more effective, AI-based digital pricing techniques are continuing to increase, leading to increased revenue and profit numbers for sellers, and more availability for buyers

Dynamically Pricing Automotive Parts

When collision repair shops need to order replacement parts to fix cars, many turn to mypricelink.com, an online platform where parts are priced dynamically based on consumer demand. GM, which first started implementing dynamic pricing for parts in 2014, has used mypricelink.com as a way to deliver genuine GM parts to shops, with Ford following suit in 2018. The key for collision shops is their ability to use the system to quickly prepare estimates and quotes for their customers and insurance agencies.

Pricing Transformation – Cross Organization Effort

As mentioned earlier, adopting dynamic pricing and ushering in a dynamic transformation impacts the entire organization.

Take Me Out to the Ballgame…at the Right Price

Sports teams are using dynamic pricing tools to find the right price to fill their stadiums. For successful teams, this usually means increasing prices to meet up with surging demand to attend games. However, even teams that struggle want to get fans in the seats, where they can pay for stadium parking, and then buy drinks, food, programs, and souvenirs.

AI-based tools can factor in a team’s on-field success, calendar events such as holidays, historic demand for games against rivals, available ticket inventory, and even weather as it recommends the ideal price to get fans into the stadium.

Gig Economy Dynamic Pricing

Uber and Lyft are two well-documented surge prices in the gig economy. As demand increases, those service providers increase their prices to meet up with demand. However, even freelance writers, designers and programmers are starting to implement dynamic pricing strategies into their business. While most don’t scale enough to use AI engines, they frequently use flexible pricing methods when quoting on jobs. As their inventory of hours decreases, they increase their hourly base rate, while high inventory of hours pushes them to lower their rates.

Dynamic Pricing Everywhere

We’re continuing to see dynamic pricing appear everywhere where things are sold. Disney World, your neighborhood grocery store, and B2B sales are all adopting dynamic pricing approaches, as a more effective and profitable way to run their business

Share

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on print

You might also like:

Pricing Optimization
Pini Mandel, Co-Founder & CEO

State of Retail 2021 and 2022

The Covid-19 pandemic has overwhelmingly impacted the retail industry across the globe. Social distancing measures and anxiety over the viral transmission of the disease have led to the enforcement of high street store closures and an accelerated shift to digital across the end-to-end customer journey.

Read More »
Pricing Optimization
Pini Mandel, Co-Founder & CEO

Develop a More Agile and Resilient Organization with A.I.-Driven Dynamic Pricing

For retailers operating in a B2C world, there are literally hundreds and thousands of different factors that can help determine the optimal pricing strategy. Artificial intelligence and machine learning deliver the ability to harness the real-time visibility your organization needs to set the right price on every SKU, in every market, across your omnichannel sales ecosystem.

Read More »