San Francisco, CA (PRWEB) July 21, 2014
The market isn't staying still, so retail prices shouldn't either. Dynamic pricing is a strategy that has made its way into the retail industry and become a necessary feature. It allows retailers to adjust prices in response to real-time market supply and demand. Retailers are able to capitalize on every transaction using dynamic pricing, increasing profits by 25% on average.
Dynamic pricing allows retailers to remain competitive while maintaining a high degree of pricing flexibility. Retailers can scale up prices for popular products or mark them down in order to increase sales velocity. The top four dynamic pricing strategies for retailers are segmented pricing, peak pricing, penetration pricing and time-based pricing.
Segmented pricing, a strategy in which retailers have an array of products with different price points, is used to target a range of customer segments. Introducing value to premium products allows sellers to capture the largest amount of market share possible. Wiser’s infographic provides ways that retailers can implement the rest of these strategies and what notable retailers have accomplished with them.
Wiser is an industry leader in pricing intelligence that has helped thousands of retailers reprice and increase profits. Arie Shpanya, the CEO of Wiser, said, “Dynamic pricing utilizes real-time information about market-forces to reprice products. Retailers can then observe the immediate effects of a price change, gain valuable insights about price elasticity, and apply this analysis to optimize their pricing and merchandising strategies.”
Industry reports estimate that by November of 2014, 65% of all retailers will be using pricing intelligence software. This correlates with the widespread use of dynamic pricing among retail giants, such as Amazon and Best Buy. Wiser suggests that online retailers implement a dynamic pricing strategy in order to stay competitive and price for profit.
To view the full infographic, visit http://www.wiser.com/infographic-dynamicpricing.