Should your business adjust prices based on demand or keep them fixed? Understanding dynamic pricing vs. static pricing can help you make an informed decision.
What Is Static Pricing?
Static pricing means consistent prices across all customers and time periods. It’s simple and predictable, but it doesn’t always maximise revenue.
What Is Dynamic Pricing?
Dynamic pricing adjusts prices based on demand, competitor prices, or other factors. Airlines, hotels, and e-commerce platforms like Amazon use this strategy to optimise profits.
Which One Is Right for You?
- Choose static pricing if you want simplicity and customer trust.
- Choose dynamic pricing if you operate in a competitive, fast-moving market.
Conclusion
The best pricing model depends on your industry and business goals. A mix of both strategies might be the key to success!
