Shoppers fed up with inflation are seeing prices fluctuate with unprecedented magnitude and frequency across categories. This trend is often seen as yet another cunning business tactic. Is the additional profit that companies gain from dynamic pricing worth the risk of alienating customers? Done right, companies shouldn’t make such trade-offs. Dynamic pricing should serve a company’s long-term interests. and So do our customers. This only occurs under two conditions. Firstly, it should be a better alternative to static prices. Second, companies need to view dynamic pricing as an integral part of customer-centricity, rather than an antithesis to it.
Dynamic pricing, the practice of changing prices in response to changing market conditions, has been in the news a lot lately, but not always for good reason.british pub chain stone gatefast food franchisor wendy’sand airlines jet blue recently drew strong criticism for its plans to fluctuate the prices of some products depending on demand. In mid-April, company The company, which owns and operates the Legoland theme park and Madame Tussauds museum, announced its own plans to fluctuate prices, often referred to in economic newspapers as “surge pricing” or “Uber-style” pricing. ing.