Dynamic Pricing—get used to it!
It’s the new flip term to describe (sometimes) hard to move inventory and improve the bottom line.
Dynamic pricing is certainly not new.
It’s been around for decades—just not by its current catchy name.
Bars have called it, ‘Happy Hour.’
Airlines adjust their ticket prices by time of day, day of week and certainly by the season.
And movie theaters offer the same films at reduced prices during non-prime time showings.
They may call it Early Bird Shows, Twilight Pricing or whatever clever matinee terms pop out of their fertile marketing minds.
The latest enterprises to have changed their pricing philosophies to the dynamic way of thinking include airline frequent flyer programs.
Disney amusement parks have also joined in. And lets not overlook Major League Baseball franchises.
Some examples.
Most airline reward programs no longer credit points based on total miles flown with the carrier but base it on actual dollars spend for paid tickets.
Try Disney World tickets on for size. They’re now priced higher during heavy demand days and times at the park.
Even the Royals got into the act by assigning ticket values based on the popularity of the visiting team.
Question is where does it stop?
It won’t!
It’s by far the best way to unload total inventory at the highest price possible at all levels.
Where else could dynamic pricing be introduced?
How about by air conditioning repair companies who would adjust their pricing during the hottest months?
Or city bus or trolly fares which could increase during prime morning and late afternoon drive times but would be lowered during mid-days and on weekends.
There’s the tax preparation business which could institute its top level pricing during April leading up to the 15th but discount earlier prep services from January through mid-March.
And how about those greedy funeral homes?
Their dynamic selling usually sets in at a time when their clients are at their lowest point of price resistance—the time of death of a family member.
Pre-planning and price comparison here are the name of the game.
(Did you know that you can actually order a casket from Costco and have it shipped direct to a funeral home? The law states that the funeral director must accept it!)
Whatever it’s called, Dynamic Pricing is the way of the capitalistic future.
Good or bad it’s here to stay.
marketing jyst gave a palatable name to “charge whatever the market will bear” and “price gouging.”
and there are lots of people who will pay ‘that’ price, and can afford to.
i could go on, but i’ll start sounding like lefsetz… or harley.
but you’re right jack, it ain’t goin’ away… they’ll just change the name again.
At least the came up with a hip(?) name—-Yeah…’DYNAMIC Piricing’….that’s the ticket…..
This is also coming to our driving habits. States on both coasts are/or have tested taxing drivers per mile (and dropping their gas tax, supposedly) and the idea has also been floated to charge a higher tax for driving during rush hour.
Don’t forget department stores and other businesses who have those things they call “sales”. Hold on a second …. HEY YOU, GET OFF MY LAWN
Explain to me this foreign concept you call a ‘sale’.
Apparently things are sold cheaper than normal to get rid of them. Strangely enough there is a pitcher for the White Sox who is apparently trying to get rid of his shirt. I don’t see $49 as a bargain though. I think that’s why he is always wearing it. He just won’t budge on the price