Dynamic pricing refers to a pricing strategy in which businesses base their prices on current market demands, which is why it is also known as surge pricing, demand-pricing, or time-based pricing.
Dynamic pricing is often carried out by an algorithm that is able to take a multitude of factors into account and determine a suitable price. The data that is generated by a MSCO solution can be utilised by the retailer to enable dynamic pricing dependant on the information provided by the application.
This feature can work to the advantage of the retailer or the customer, depending on the way it is implemented. The benefit to the retailer is a little more obvious, allowing for flexible pricing depending on the market conditions, while it could also be used to decrease prices of products close to expiry or fresh products in the hour before the store closes.
This reduces waste and allows customers to get a good deal, while also providing additional revenue to the retailer that would have been lost if the product had been allowed to simply expire.