Imagine cashing more money on products with high demand on the market. That is the dream for any company. On top of that, imagine moving products that stayed on your inventory for many months, and you thought you could not sell. That is what frequent price changes do for eCommerce companies. Your sales team is happy with this.   

But there is a problem. Like any other strategy, you think in your public or the customers in this case. Are they ready to see frequent price changes? If the prices change weekly, daily, or hourly, will they grow frustrated, leave your company and go towards your competition? That is a fair assessment.     

Believe it or not, dynamic pricing is not a new concept. It's been around for at least 40 years. In 1980, airlines were the first industry to use dynamic pricing. They began changing the prices of the tickets depending on the time of the day, seats left, and flight length. Hotels jumped in this trend when they saw the success it brought to the airlines. So, buyers are accustomed to buying in places that use dynamic pricing when they plan to go on holidays.  

But not only when people plan their vacations. They also have encountered dynamic pricing in online marketplaces. According to Quartz, Walmart and Best Buy change the prices of their products approximately 50,000 times a month. But Amazon leads the stat when we talk about price changes. Business Insider reported that they do it approximately 2,5 million times a day, 50 times more than Walmart and Best Buy.      

So clearly, the majority of the people have faced dynamic pricing, whether they know what it means or not. But if they have not encountered dynamic pricing, then these are some ways you can prepare your customers for dynamic pricing.  

1- Transparency  

If your company is using the dynamic pricing strategy, you can include on your website a tab or a page where you can describe what that means. Explain to your customers the benefits it brings to your company and customers.  

With time, customers will know that your business implements dynamic pricing, and there will be no need to continue with this. Examples are airlines and hotels. We know that they use dynamic pricing and how it works.    

2- Avoid price gouging  

Tragic events are tough for everybody. But for you as a company, that is a time when you have to show sympathy and humanity. For example, you cannot raise the prices of CDs when an artist passes away. There have been cases about it, and people hate that and condemn that action.  

Conclusion  

The majority of people have encountered dynamic pricing in their lives. But many of them do not know the correct name. But still, there is a small amount that does not know what it is. If your company is using this strategy, you must prepare your customers for it. PriceTweakers is a pricing software that helps you implement dynamic pricing in your store. With this pricing strategy, you can increase your sales and profits. But you have more features that no other company offers you. So, what are you waiting for to join PriceTweakers? Contact us. 

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