Over the years, there have been many factors that have impacted and ultimately shaped the way we do our weekly food shop. Gone are the days of walking down a local high street visiting the butcher, fishmonger, and greengrocer. Supermarkets changed all of that. And have continued to change the way we shop since their emergence.
With dynamic pricing infiltrating so many aspects of our lives, it is less surprising each time a new industry joins the bandwagon.
Given the popularity of dynamic pricing in travel costs (read more with Pricing Strategies for Tour Operators and Online Travel Agents), it is not a shock that hospitality as a whole appears to be looking at stirring up how they price their businesses.
This is true of hotels and also restaurants, the newest thread of hospitality to join in with dynamic pricing in a bid to increase profits and sustainability.
Want to change your prices in real time to adjust to market conditions? Want to keep up with your competitors at all times? Well, dynamic pricing might be the answer you are looking for.
Dynamic pricing is the way forward because it's a pricing strategy where prices change in response to real-time supply and demand.
It's really not rocket science – in order to maximise your profits and stay ahead of the competition you know you have to price at the optimum level.
In order to achieve this, what your business needs is an accurate price management system (definitely not spreadsheets) – and the modern, accurate and most efficient solution to all your pricing demands is to invest in price list software.
Pricing is one of the four elements of the marketing mix, along with product, place and promotion. An effective pricing strategy is vital for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives – and also on which industry they represent.
According to Forrester, an independent technology and market research company, dynamic pricing is “an innovative pricing mechanism made possible by recent advances in information technology… that allows online companies to adjust the prices of identical goods.”