The Dynamic Pricing, Competitor Price tracking & Current Day Ecommerce

Dynamic Pricing: 

These are different terms used by the industry experts.

Time based pricing, Demand Pricing, Flexible pricing, Surge Pricing

What other term you may know ?

Let us understand this term; Dynamic pricing

Consider the product here is pop-corn 

Assume that you may buy the product at $2 from a super market

The same product, you may buy at $4-$6 from a mall

The same product, you may buy at $6-$10 from a beach / theme park

The same product, you may buy at $10-15 from a cinema theatre when serve at your seat 

Same product, but different prices at different places. 

Yes, Customer still buy this product. Any thoughts; Why so?

One reason customer willing to pay the additional Dollar value could be, "Instant Gratification"

This model does runs on the economic concept of demand and supply; but at an elevated level.

@ Supermarket - The first purchase decision was made because of necessity

@ Mall / Beach - The second purchase decision could be because of feel good factor with peers 

@ Park / Theatre - The 3rd and 4th purchase decision could be because of the want created by the sales

What if you have an ecommerce store? 

Is it possible to harness the benefit (the extra margin) of dynamic pricing in ecommerce / online store?

Know your competition and position your product portfolio.

 > What are your Key Value Products in each category / segment?

 > Who are your top three competition in these category / segment?

 > What Percentage of the assortment do competition carry?

 > How often do they change price? And What is the probable reason? 

Whether it is thanks giving day, black friday or a new year eve - or even a regular day. As a retailer; if you monitor your competition pricing and assortment strategies and play your cards properly; you have the upper hand over the competition.