Dynamic pricing

Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing is a pricing strategy in which businesses set flexible prices for products or service based on current market demands. Businesses are able to change prices based on algorithms that take into account competitor pricing, supply and demand, and other external factors in the market. Dynamic pricing is a common practice in several industries such as hospitality, travel, entertainment, retail, electricity, and public transport. Each industry takes a slightly different approach to repricing based on its needs and the demand for the product. Dynamic pricing can be unpopular with consumers and favours the wealthy, who are less likely to be priced out of a market when there is high demand, such as for electricity during a heat wave or for food during a famine. Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing is a pricing strategy in which businesses set flexible prices for products or service based on current market demands. Businesses are able to change prices based on algorithms that take into account competitor pricing, supply and demand, and other external factors in the market. Dynamic pricing is a common practice in several industries such as hospitality, travel, entertainment, retail, electricity, and public transport. Each industry takes a slightly different approach to repricing based on its needs and the demand for the product. Dynamic pricing can be unpopular with consumers and favours the wealthy, who are less likely to be priced out of a market when there is high demand, such as for electricity during a heat wave or for food during a famine. Dynamic pricing has been the norm for most of human history. Traditionally, two parties would negotiate a price for a product based on a variety of factors, including who was involved, stock levels, time of day, and more. The Quakers were the exception to this rule, because they charged the same price for every product in the name of fairness. This “fixed pricing” model was a way to fight back against a society that they Quakers saw as unfair.