What is a dynamic pricing strategy?
Dynamic pricing is a pricing strategy which utilizes variable prices, instead of fixed ones. This allows businesses to adjust their price offerings to account for changing demand and market trends, or to utilize own internal data to trigger a desired pricing action.
A market based dynamic pricing strategy is beneficial for you when you have highly price-sensitive products, and it's crucial to react fast to changes in competitor prices. Please notice that competitor availability information is available only for specific modules.
Utilizing a dynamic pricing strategy allows you more control over how and when you react to competitor pricing or trigger a price change based on chosen factors. A rule-based dynamic pricing strategy allows you to automatically react to a changed situation to reach your targets more efficient.
There are two ways to create a dynamic pricing strategy:
Dynamic pricing strategy to react on a changing market situation
Dynamic pricing strategy that utilizes own internal data to trigger a price action
General information of how to make a dynamic pricing strategy?
Start by going to the Product Catalog. From the Product Catalog you can use Filters to find the products for which you wish to create a dynamic pricing strategy.
Select Create dynamic pricing strategy from the pricing actions menu. This opens the pricing workflow editor modal where you will name your pricing strategy and give it a description. This is also where you will define the pricing actions, safeguards, settings, and backup actions that you wish to execute. If you are unsure how to define and execute pricing actions, please check this helpful Pricing Actions guide.
1. Dynamic pricing strategy - Market based
2. Dynamic pricing strategy that utilizes own internal data to trigger a price action
You can create powerful automatic rule based strategies that will allow you to target products dynamically and accordingly to your targets with help of combining filters and insights.
3. Once you have defined what products products, the price strategy actions, safeguards, settings and backup actions you can activate the strategy by clicking on the on the Next button at the bottom right of the popup menu.
4. After you have created and confirmed your dynamic pricing strategy, Sniffie will do the rest. Using dynamic pricing makes keeping your prices up to date easier than ever before!