The new pricing strategy of dynamic pricing is getting online retailers really excited.Dynamic pricing allows organizations, airlines for instance, to charge different customers, different prices for the same products and services.The prices charged fluctuate in an extreme fashion, and that is indeed surprising.There will be lower percentages of price changes more often, and a drastic change is likely to happen too.Online retailers have a large number of reasons for adopting pricing strategies such as the dynamic pricing software by Upstream.
It may be great in the short term, but it’s definitely not the best idea for long term gains.Changes in price are not only going to affect brand perception in the mind of the consumer, but it is also going to affect how consumers shop for services and products, and this is something, retailers have to understand. Upstream Commerce on youtube.
A few companies have found a lesson in this situation, but it has been a hard road.This does not reflect well on market share as well as on consumers.
Dynamic pricing will lead to customers getting agitated and start screaming about how unfair dynamic pricing is as they have been charged more than the others.Customers started losing trust and the retailer will suffer.This is especially in cases, when retailers pledge not to mark up their prices to more than a certain percent.Consumers do not benefit much from this pledge as the environment is riddled with price uncertainties.pricing is right.
Hotels and airlines have been using this pricing strategy for a while, so why are customers not willing to accept it with other online retailers as well?The key difference here is that hotels and airlines are not allowed to use any other pricing.This strategy is used by hotels and airlines, because they services and products, i.e room and seats on the airline, expire after a certain point and their demand varies, hence the strategy works.
Depending on the demand, the prices will have to change to suit the conditions.Customers do not mind paying last minute high prices as they are aware that they are getting a seat on a flight that is already jam-packed.
Retailers are likely to be subjected to two scenarios is dynamic pricing is continued to be used.The brand will be damaged.People could change the way they shop for products and services online.Now customers will no longer stick to their ‘trusted sites’ and will not hesitate to compare prices before any and all purchases.Customer will now be forced to compare and buy products or services that are the cheapest, which does not work well for the retailer.
The prcing strategy clearly affects the brand as a whole.Dynamic Pricing should definitely not be put on hold, but online retailers should use it more sparingly and wisely.
You can indeed benefit from dynamic pricing if you do not hide the fact, if you are open about it, if you let the customers know and offer them refunds automatically through prime programs or if they have seen a price that is lower after the purchase has been made, you could also add a cap percentage on price fluctuations.