How do you develop and update your dynamic pricing skills and knowledge in a fast-changing environment?

Dynamic pricing (DP) is often confused with linking the pricing to the supply side (less supply, charge high and vice-versa). On the contrary, DP is rooted on the demand side. The reason DP works is because different customer have different perceived value of your product and so you can charge them differently. So to develop DP skills, one needs to: (a) understand whether or not there are different customer segments who attach different value to their product. Subsequently, one needs to establish the factors that can help them identify or segment such customers. (b) forecast demand for each customer segment, along with their willingness to pay (c) determine how many of each customer types you are willing to accommodate and at what price.

Dynamic pricing is essentially rooted in value-based perceptions driven by demand in every customer segment and situations. You need to adjust prices (upward) in response to strong demand. And more importantly, be ready to take complete accountability to challenge pricing myths with surprises!

Uma coisa que funciona pra mim e procuro fazer com certa frequência é estudar cases de sucessos dos maiores players do mercado. Mas não apenas ler sobre eles, mas sim ir a fundo nos detalhes e tentar simular em um ambiente controlado o cenário que levou tal player a tomar decisões e adotar as estratégias de preço dinâmico. É uma ótima forma de colocar em prática esses conhecimentos base. Com isso, me obrigo a pensar fora da caixa para identificar a maior parte das variáveis que estiveram envolvidas no processo mas que não necessariamente aparecem no case de mercado.

Dynamic pricing works mainly to let companies adapting to market conditions; it is heavily dependent on data analysis to adjust product prices, and understanding the behavior of consumers and their willingness to pay. Companies can set prices that maximize their profits and effectively manage their inventory. One of the main advantages of dynamic pricing is its ability to track consumer behavior and understand market trends. It also improves inventory management by allowing companies to clear their inventory in real time.

Am wichtigsten aus meiner Sicht ist: learning by experience. Wenn du selber keine Erfahrungen sammeln kannst, suche dir einen Mentor oder schreibe Spezialisten auf LinkedIn an. Sammle unterschiedliche Meinungen und profitiere von der Erfahrung anderer!

Data is they key skill in pricing as a whole not just dynamic pricing. Everyone below a VP should be adding as many data skills to their resumes and skillets as they can.

Conhecer os dados é muito importante para bons processos de precificação. Tenho visto que a cada dia, o profissional de Pricing se aproxima mais e mais da área da Ciência de dados, pois já não basta apenas conhecer os dados, é preciso conhecer sobre dados. Saber tratá-los e extrair informações e insights acionáveis a partir deles. Assim como nos últimos anos, surgiram os Cientistas de Dados, começa a surgir também os Cientistas de Preços que são profissionais sabem usar o conhecimento sobre dados para transformar os processos de precificação.

One very powerful strategy is to align data across multiple players in your industry. 7Learnings for example builds a common dataset for retailers and brands on which you can learn with standardized AI methods and models. This avoid every retail having to do the data cleaning on their own

Der vermutlich wichtigste Bestandteil vom Pricing! Kenne deine Daten und stelle sicher, dass diese korrekt sind ("Shit in, Shit out!"). Abgesehen von den genannten Datenquellen kann es helfen (je nach Usecase) die eigenen Daten so granular wir möglich zu haben: vom CM1 bis CM5 pro Artikel. D.h.: welche Einkaufskosten, Lagerkosten, Marketingkosten und sonstige Kosten hat dieses Produkt.

Data never lies. You can take a lot from both "historical" and "current" data sets. Regularly analyze your sales data, customer behavior, and market trends to understand what drives your pricing. Use automation tools to track key components fast. Stay on top of your competitors' pricing strategies, too. For online merchants, letting data guide your pricing decisions will help you stay competitive, respond quickly to market changes, and optimize your profits.

Price testing is a great way to test in B2C environments. With new technologies it's become easier to track. The insights gained from testing are far more valuable than usage data analysis.

To excel in dynamic pricing, don't be afraid to experiment and innovate. Test different pricing strategies to see what works best for your products and customers. Compare prices and gather insights. Stay open to new technologies and tools that can enhance your pricing approach, like AI and machine learning. Keep an eye on industry trends and be willing to try unconventional methods. For online merchants, doing all these shouldn't be scary. Tools help to make it fast and efficient.

Before even diving into dynamic pricing, consider whether your product/ service is suited for dynamic pricing. Dynamic pricing is generally suited for services which have a component of asset rental. Imagine flights (you are renting space on an aircraft going from A to B), Hotels ( you are renting a room with some furniture), Advertisements ( you are renting a slot on paper/ TV/ intenet). Dynamic Pricing may be also suitable for products which derrive significant value from a commodity. Think of Jewellery made of gold, prices will fluctuate based on gold pricing. Infact it can be used for any industry wherein demand is volatile but supply is relatively stagnant. Think of surge pricing for Ubers or surcharge on electricity bills.