AI-Powered Dynamic Pricing: A Complete Guide

In this Story

Dynamic pricing isn’t a new concept. For decades, consumers have been accustomed to demand-driven price changes in industries such as air travel and hospitality. In the last few decades, “surge pricing” has become a new part of our collective vernacular with the advent of ride-sharing apps. Today, it’s no surprise for consumers to see price fluctuations in their online shopping carts, as retailers raise and lower prices on a daily (or hourly) basis.  

In an ever-shifting market landscape where consumer demand ebbs and flows, dynamic pricing is a useful tool (when implemented properly) to remain competitive and more profitable. Dynamic pricing can be an effective tool for leveraging increased demand to balance out slow periods and recoup from other unexpected market expenses and losses.

What is Dynamic Pricing?

Dynamic pricing, also known as real-time pricing, is an automated pricing strategy businesses use to capitalize on especially high-demand periods. It involves setting flexible prices for products or services based on current market activity. It’s one of many pricing strategies that a brand can deploy but has increasingly become a popular choice for more and more brands.

Other tactics employed in dynamic pricing include: 

Competitor pricing
Price skimming
Markdown pricing 
Penetration pricing
Variable pricing
Product bundling

While these tactics are widely used, demand pricing stands as a particularly effective strategy because of its reliance on real-time data to trigger changes and capitalize on price increases for in-demand or high-interest products to exponentially drive revenue.

How Centric Pricing & Inventory Optimizes Dynamic Pricing

Centric Software® takes dynamic pricing to the next level by seamlessly integrating real-time market data, market analysis and internal inventory insights to automate pricing decisions. With Centric Pricing & Inventory™ :

Leverage Real-Time Data: Analyze live market trends, competitor pricing and inventory levels to adapt pricing strategies in real time.

Optimize Stock Levels: Prevent overstock or stockouts by aligning pricing strategies with inventory availability, ensuring profitability across all product categories.

Improve Margin Control: Balance price adjustments with profitability goals by identifying opportunities for increased margins during high-demand periods.

Simplify Implementation: Automate complex pricing workflows across multiple channels, eliminating manual intervention and minimizing errors.

Enhance Forecasting: Use advanced analytics and machine learning to predict future demand, enabling proactive pricing adjustments that capture untapped revenue opportunities.

Centric Pricing & Inventory empowers brands with a robust, data-driven platform to maximize revenue, outperform the competition and deliver exceptional value to customers—all while safeguarding profitability.

Ready to unlock the full potential of dynamic pricing with Centric Pricing & Inventory?

Download the Guide to learn more!