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The Principle of Dynamic Pricing is Effective in the Short Term but it Shrinks Sales Volumes


Original Content- Business Upside


As the price of goods and services is directly linked to a company’s profitability, it is essential to understand the pricing dynamics to gain a competitive edge. Whichever pricing strategy you choose, it must have ready acceptance among consumers and businesses. Deviating from the norms is permissible until companies, the industry, and consumers feel that the pricing policy does not hurt them. Many companies introduced dynamic pricing to boost profits rapidly, resulting in consumer resentment. The problem was mainly because of faulty implementation of the dynamic pricing strategy that belied the expectations of consumers and businesses. Maybe, the timing was not right too.


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