Your Dynamic Pricing Questions, Answered.

We get questions about our dynamic pricing software all the time. And we make a point to answer them all – even the tough ones. Browse through just some of the questions we get most often.
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What is Dynamic Pricing?

Dynamic pricing uses algorithms to calculate and adjust prices in real time so you can respond to market fluctuations. This helps maximize your revenue.
"Why should I consider dynamic pricing?"

Markets shift everyday. Staying on top of the changes with real-time pricing simply allows you to stay competitive. Here is a high level look at the benefits of dynamic pricing:

 

Boost sales — Dynamic pricing generates more revenue by adjusting prices to demand.

Gain valuable insights — How customers react to price changes can shape future strategies.

Create demand — In times of low sales where there is a risk of little or no profit, an item is offered at a lower price — allowing you to maximize profits. 

Save time — Automating the process of pricing frees up valuable time and money.

Keep pricing accurate — When external factors (i.e. transportation, raw materials) cost more, pricing is adjusted to protect your margins.

"Is dynamic pricing right for my business?"

Dynamic pricing is not a one-size-fits-all solution for all businesses. However, dynamic pricing is beneficial and recommended if one or more of these situations hold true for your organization: 

 

  • The volume of prices to manage make it impractical or expensive for employees to perform without automation;
  • Your organization handles multiple transactions per day;
  • Your organization seeks to leverage advanced statistics and machine learning to fix suboptimal pricing practices identified in historical deals; and/or
  • You are currently competing in a dynamic market
"What do I need to start pricing dynamically?"

Achieving success with dynamic pricing often comes down to ensuring you have the right pricing partner who understands your business, the market you're in and your organization's goals. To get started, you need access to your consumer data, transactional data and product data. You also need a partner that understands your pricing strategy and tech stack. 

Automate & Optimize

When a 1% price increase leads to over 8%* profit growth, suddenly everyone wants to know how. 

 

*McKinsey study

 "Spreadsheets are the worst. Is there a better way to manage pricing?"

We hear you. Spreadsheets can't consider market conditions, competitive pressure, willingness to pay, raw material shortages or any other factors that impact pricing. A cloud-native pricing software can manage all these influences to give you accurate pricing, faster.

 "Spreadsheets are the worst. Is there a better way to manage pricing?"

We hear you. Spreadsheets can't consider market conditions, competitive pressure, willingness to pay, raw material shortages or any other factors that impact pricing. A cloud-native pricing software can manage all these influences to give you accurate pricing, faster.

"How do I set my prices faster?"

An AI-powered pricing solution stores all your data in one centralized location, allowing you to optimize multiple pricing elements at the same time with speed and accuracy. By removing the tedious steps required to manage your pricing in a spreadsheet, you can price 90% faster and avoid the risk of human error.

"How do I set my prices faster?"

An AI-powered pricing solution stores all your data in one centralized location, allowing you to optimize multiple pricing elements at the same time with speed and accuracy. By removing the tedious steps required to manage your pricing in a spreadsheet, you can price 90% faster and avoid the risk of human error.

"Markets fluctuate, so how do I control my pricing and spend less time doing it?"

When markets fluctuate, it becomes more difficult to set prices. A pricing solution can help you find alternate data sets to base your predictions on. For example, you can pull data from other historically unstable times in the market, such as during a hurricane. An AI-powered pricing solution also allows you to use different models to suggest a point estimate and test against them to see what kind of results you could expect. Plus, setting prices in real time saves you both time and money.

"Markets fluctuate, so how do I control my pricing and spend less time doing it?"

When markets fluctuate, it becomes more difficult to set prices. A pricing solution can help you find alternate data sets to base your predictions on. For example, you can pull data from other historically unstable times in the market, such as during a hurricane. An AI-powered pricing solution also allows you to use different models to suggest a point estimate and test against them to see what kind of results you could expect. Plus, setting prices in real time saves you both time and money.

"Does the number of SKUs I manage matter?"

Whether you manage a couple hundred SKUs or more than you care to count, a pricing software can always help. For pricing a lot of products and services, an AI-powered pricing solution helps you set prices faster and more accurately. For managing fewer SKUs, a pricing solution can still be beneficial by helping to uncover insights based on real-time consumer behaviour.

"Does the number of SKUs I manage matter?"

Whether you manage a couple hundred SKUs or more than you care to count, a pricing software can always help. For pricing a lot of products and services, an AI-powered pricing solution helps you set prices faster and more accurately. For managing fewer SKUs, a pricing solution can still be beneficial by helping to uncover insights based on real-time consumer behaviour.

"Can Pricefx manage my high-SKU, high-volume operation?"

Yes. A high-SKU or high-volume operation is nearly impossible to manage without a pricing software. With Pricefx in particular, you can price a lot of products and services in real time, both accurately and efficiently.

"Can Pricefx manage my high-SKU, high-volume operation?"

Yes. A high-SKU or high-volume operation is nearly impossible to manage without a pricing software. With Pricefx in particular, you can price a lot of products and services in real time, both accurately and efficiently.

Implementation

The truth behind implementing a pricing software.

Hint: it shouldn't be painful.

Integration

Speed

Data

"Does Pricefx integrate with existing systems?"

  • Yes it does. It enables real-time pricing based on real-time data by integrating seamlessly into your current technology stack as well as many legacy systems.

Results

Reaping the rewards of pricing smarter, faster and more efficiently.

"Can pricing software really boost profits?" 
Yes. You should expect an increase of 1-3% from your pricing software. Switching from spreadsheets to a cloud-native pricing solution automates tedious data mining, allows you to test different pricing strategies and helps you respond to market fluctuations faster, improving your overall bottom line.

"Won’t it take years for my company to start saving money and seeing ROI?"
Not at all. With a good pricing solution, you should start seeing a return on your investment in months, not years. Our Pricefx cloud-native platform ensures one of the fastest time-to-value ratios. Typically, the ROI on a pricing software is 1-3% in gross margin improvement.

"How do I get the best results from a pricing software?"
The extent of benefits you can experience depends on how carefully you select, adopt and use the pricing software solution. A few ways to help you reach the full potential of your pricing software include:

  • Get your senior leaders aligned
  • Ensure all data is accurate
  • Choose pricing tools carefully
  • Train staff to use tools correctly
  • Remain focused on your strategy

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