What is dynamic pricing?

Dynamic pricing is a strategy where product prices are automatically adjusted based on factors like demand, competition, and inventory.

How does dynamic pricing work

Retailers use pricing algorithms and competitive intelligence tools to change prices in real-time or on a scheduled basis.

Types of dynamic pricing:

• Time-based
• Demand-based
• Competition-based
• Personalized pricing

How to measure dynamic pricing:

Price elasticity, profit margin, sales volume, conversion rate.

Why is dynamic pricing important to marketers?

It helps maximize revenue and stay competitive, especially in fast-moving or commoditized categories.

Who needs to know about dynamic pricing:

• Pricing analyst
• Ecommerce manager
• Revenue strategist

Use dynamic pricing in a sentence:

The brand implemented dynamic pricing during the holiday season to increase margins while maintaining competitive offers.