Why did the airline introduce "dynamic pricing"?
Because our seats*, in the back, boarding group 5️⃣**, shouldn't cost the same as the "prime real estate" near the bathrooms 🚽 ***.
*37C and 37B, but Raffi Sarkissian generously offered me the window seat 🤗 (best co-founder!)
** I also recently learnt you could be group 6️⃣ with United Airlines, love, love, LOVE, US domestic flights! 🤯
*** If you have already paid more to hear each flush 💦 🥜 during your flight, I'd love to understand the decision process and satisfy my intellectual and human curiosity 🕵🏻♀️
--
Joke aside, dynamic pricing is a powerful strategy that enables companies to optimize price based on market conditions. For instance:
- Offer and demand: Uber surge prices, Airbnbs etc
- Cost of servicing:
* If you're an AI company that uses different providers under the hood: Mistral or OpenAI depending on circumstances, and/or different models (with varying costs), you'd like to charge a different price.
* Same if you're a Telco (or MVNO, or CPaSS, eSim provider) and you're re-selling communication services that you bought to different providers yourself
* Same for... Fintechs, that often rely on banking rails they need to pay / lease to incumbents...
... the applications are endless.
The good news are:
1️⃣ You should probably give it a try...
2️⃣ ...figuring out the right pricing is an ongoing work, and the market and your product will keep evolving, so prices are bound to be "living organisms"...
3️⃣ ...it's not trivial to implement dynamic pricing and a flexible revenue infrastructure, but Lago abstracts this complexity for you.
Focus on what you do best!
And yes, while I was stuck waiting to board (group 6!) on a UA flight, Raffi Sarkissian and the team shipped a great demo video, updated our slick product documentation (links in the comments).
We're happy to demo this personally to you, anytime!