Enter the New Realm of Dynamic Pricing: Why Traditional Pricing Methods No Longer Work (Management Guides and Tools)

Description

What’s the big deal about pricing and price theory, you might be wondering? Some businesses set prices on the basis of a gut feeling while others take the underlying demand curve into account, but their strategies fall apart the minute the demand curve shifts or if the market’s dynamics change. Indeed, in today’s disruptive world such an occurrence is exceedingly common. Therefore, prices should be dynamic so as to adjust not only to market conditions but also to customer segments. Dynamic pricing is a form of price personalization or price discrimination.The truth is that price theory and determination have never been easy or straightforward. This is because price depends almost entirely on how well you can measure the value proposition inherent within your product. Deciphering the value proposition enables companies to be able to really nail their segmenting decisions, convey the inherent value of their products to customers unfamiliar with their benefits, and handle any pricing issues fairly and ethically. But the value proposition is not perceived equally by all customers.Price is more than just a tool inherent to sales and market share. It is a fundamental part of your growth strategy and in this book, I aim to shed some light on how to define and balance your value proposition with customer perception and achieve seamless, dynamic pricing.