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Pricing is king because nothing else will define your business and products more – or, have such a vital impact on the success of your business. Your prices influence how many customers actually make a purchase, how your products are perceived, the types of customers you attract and the amount you collect in sales revenue.

The global pandemic is producing "extreme market dynamics". In some markets, demand is skyrocketing and companies are struggling to keep up. At the same time, demand for many other goods has all but dried up: who wants to buy the latest summer fashion if you've nowhere to show them off?

It shouldn’t be a surprise that ecommerce has changed dramatically in the last few months. Lockdown has significantly altered consumer behaviour as we’ve been forced to adjust our lives.

Why should you stop stressing about competitor prices? In this post, we will share why only using competitor data to inform your pricing strategy is a red herring that will cause more harm than good to your business; and the key to fully optimising the prices of your products online or in your physical stores, is to use competitor data, as one of many data sources to make pricing decisions.

This week, we have a guest blog post from Patrick Foster.

Patrick is a writer and ecommerce expert from Ecommerce Tips — an industry-leading ecommerce community on a mission to share myriad business and entrepreneurial insights from the sector. 

We've all become used to the idea of the price of an airline seat varying according to the season, day of the week and time of day.  This is dynamic pricing in action.  The “new kid on the block” however is the setting of the price of an airline ticket according to the attributes of the customer i.e. personalised pricing.

Almost half of the 65 million trips taken abroad each year by UK citizens are "package holidays" - where the consumer buys a complete package of accommodation, flight and connections for a single price.  It’s a highly competitive market with a small number of large tour operators wrestling hard for market share.

If you are not constantly reviewing and updating your prices you could be missing out.

Technology now allows businesses to change prices frequently, minute-by-minute if required.  Amazon and Expedia update their prices several times a day and consumers are becoming increasingly accustomed to this state of affairs everywhere they shop – so, if it works for these "big players", what's stopping you from making frequent price changes?

Pricing doesn't always need to be logical but it does need to work because it has a huge impact on a business's bottom line.  Raising or lowering prices can be the quickest way to either sell more products or to earn more for each item sold.  Either way, it's all good news for a business owner.

A revolution has happened recently in the travel world and it started when A.I (artificial intelligence) slowly began to infiltrate the industry – and things are continuing to change at a heady pace.