Dynamic pricing is one of the biggest trends in eCommerce right now. Companies like Bright IT and Shift4Shop placed dynamic pricing as one of the trends in 2021. But to build and have a dynamic pricing strategy for your products, you must assemble it correctly. If you don't do it, you have a powerful and fascinating pricing strategy that does not work. To prevent you from committing those mistakes, these are three items that you cannot ignore when building the perfect dynamic pricing strategy for your company.      

1- Time frame 

Customers arrive at your online store at different hours. The advantage of selling online is that you get worldwide visitors, which means many time zones. But you have to measure your website’s traffic to know which are the busiest hours and the slowest. With that information in hand, you can take advantage and, for example, raise your prices when your site has the most active hours. You can also lower the prices on some of your products during the slow hours to sell products and attract more customers.    

But manually modifying the prices takes lots of your time. That is why you pick pricing software because it does this automatically and quickly. PriceTweakers helps you can create pricing strategies that will increase the sales and profits of your company. Also, you will never lose money because you can add the minimum margin on your products, preventing you from selling below your purchase price.      

2- Competitors' prices 

Retailers frequently change their prices because that is one of the methods to attract customers. They even change the prices multiple times a day. And you need to keep track of that information when you are interested in applying a dynamic pricing strategy. Without their products' prices, you cannot have a dynamic pricing strategy working correctly. Pricing programs like PriceTweakers follow your competitors 24/7. Also, you can increase and decrease your prices without affecting your margins and brand image. 

3- Elasticity 

When you decide to implement the dynamic pricing strategy, you have to make sure your product is inelastic. What do we mean by that? Inelastic products are products where the demand stays the same, even though there is a price change (increase or decrease). Since a dynamic pricing strategy involves constant increases and decreases in price, elastic products get disappointing results. So, investigate if your product will handle the dynamic pricing strategy to prevent failures. 

Conclusion 

Dynamic pricing is one of the most used pricing strategies right now. But if you implement it incorrectly, you will not earn any benefits. However, the three factors mentioned above are vital to building the perfect dynamic pricing strategy and achieving the best results. PriceTweakers is the best alternative if you are looking for a pricing program. With our Dynamic Pricing (DRS) tool, you can create pricing strategies that are active immediately, and that will help you increase your sales and margins.   

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