February 23, 2021
5 min read

Dynamic Pricing: Three Critical Questions Answered

Dynamic Pricing: Three Critical Questions Answered https://pexels.com/photo/ethnic-vendor-selling-assorted-fruits-in-local-bazaar-4395373

Retailers are facing increased pressure by major brands like Amazon, Target and Walmart that offer “everyday low prices.” They’re realizing that in order to compete, they need faster, more responsive pricing strategies. 

Enter dynamic pricing.  

It’s a daunting and intensive process for retailers to keep track of thousands of prices. In addition, they must also determine how best to optimize pricing strategies and execution. An AI-driven, dynamic pricing solution can strategically price items for a unified commerce strategy. It’s key to making real-time, in-store pricing updates, as well as personalized pricing for customers.  

What exactly is dynamic pricing?

Dynamic Pricing is a “mom and pop” shop principle for the digital age. Small, locally run stores often employ a pricing policy based on past experience. For example, offering a discount on bread, fresh produce or other perishable goods close to closing time would help drive profit and limit inventory.   

Today, for retailers managing a number of stores, they must similarly consider a variety of factors in their pricing strategy. This includes the supply chain, consumer demand, competitor pricing and products’ relationship to one another. Dynamic pricing helps retailers quickly navigate every factor at scale. 

What are the benefits of dynamic pricing?

Dynamic pricing enables retailers to react to internal and external factors to quickly and effectively establish optimized prices. For example, retailers can respond to competitor pricing. Nowadays, shoppers conducting comparison pricing is common. This makes price an important factor to a sale. This also means price changes are more frequent. Dynamic pricing can build a revenue growth strategy that not only protects the brand’s value, but also its margins. 

Why should I trust Dynamic Pricing by GK?

Our Dynamic Pricing by GK solution is AI-enabled, allowing retailers to run their omnichannel pricing strategies in real time and at scale. It allows for faster, more accurate pricing optimization based on available customer and market data. With this, retailers can proactively adjust prices for every customer, on every channel.  

Dynamic Pricing by GK was recently recognized as a Representative Vendor in Gartner’s 2021 Market Guide for Retail Unified Price, Promotion and Markdown Optimization Applications (Gartner subscription required). You can read more about the designation here.  

Watch a short video to see more about Dynamic Pricing by GK, and reach out to us today to learn what the solution can do for your business