changingminds.org

How we change what others think, feel, believe and do

| Menu | Quick | Books | Share | Search | Settings |

Real-Time Pricing

 

DisciplinesMarketing > Pricing > Real-Time Pricing

Description | Example | Discussion | See also

 

Description

Change prices by the minute, based on a constantly varying assessment of supply-and-demand and other related factors.

Take account of whether customers actually buy or not after viewing your products. If many of them buy, you can try putting up the price. If many do not, put the price down. You can also vary price based on an assessment of price sensitivity, for example by noting how well dressed the customer is or how hesitant they are in considering buying.

Example

An internet shoe sales company is programmed to take account of weather and vary the price of external footgear accordingly. It also notes the elasticity of demand and will scale back prices if page views are not leading to sales.

A local furniture shop sets discount that salespeople can offer each day based on actual sales across the previous week.

Discussion

This can be a useful strategy when selling on the internet, where prices may vary wildly. To do this properly, you will need an intelligent price-setting system, with access to 'normal' prices. These may be available by scanning competitor sites or subscribing to industry data sources.

An important factor consider is customer perception of fairness. If they think you are taking advantage of them, while you may make a sale now, they may go elsewhere in the future. This will be affected by their knowledge of what the 'normal' price would be.

A way the real price can be cloaked is with a sticker price that is discounted, typically during negotiation or by 'spontaneous' price-reduction that looks like a random act of kindness. Done well, this will result in customers becoming more loyal, more likely to return and more likely to recommend you.

See also

Value Pricing, When to Give a Discount

 

Site Menu

| Home | Top | Quick Links | Settings |

Main sections: | Disciplines | Techniques | Principles | Explanations | Theories |

Other sections: | Blog! | Quotes | Guest articles | Analysis | Books | Help |

More pages: | Contact | Caveat | About | Students | Webmasters | Awards | Guestbook | Feedback | Sitemap | Changes |

Settings: | Computer layout | Mobile layout | Small font | Medium font | Large font | Translate |

 

You can buy books here

More Kindle books:

And the big
paperback book


Look inside

 

Please help and share:

 

Quick links

Disciplines

* Argument
* Brand management
* Change Management
* Coaching
* Communication
* Counseling
* Game Design
* Human Resources
* Job-finding
* Leadership
* Marketing
* Politics
* Propaganda
* Rhetoric
* Negotiation
* Psychoanalysis
* Sales
* Sociology
* Storytelling
* Teaching
* Warfare
* Workplace design

Techniques

* Assertiveness
* Body language
* Change techniques
* Closing techniques
* Conditioning
* Conversation
* Confidence tricks
* Conversion
* Creative techniques
* General techniques
* Happiness
* Hypnotism
* Interrogation
* Language
* Listening
* Negotiation tactics
* Objection handling
* Propaganda
* Problem-solving
* Public speaking
* Questioning
* Using repetition
* Resisting persuasion
* Self-development
* Sequential requests
* Storytelling
* Stress Management
* Tipping
* Using humor
* Willpower

Principles

* Principles

Explanations

* Behaviors
* Beliefs
* Brain stuff
* Conditioning
* Coping Mechanisms
* Critical Theory
* Culture
* Decisions
* Emotions
* Evolution
* Gender
* Games
* Groups
* Habit
* Identity
* Learning
* Meaning
* Memory
* Motivation
* Models
* Needs
* Personality
* Power
* Preferences
* Research
* Relationships
* SIFT Model
* Social Research
* Stress
* Trust
* Values

Theories

* Alphabetic list
* Theory types

And

About
Guest Articles
Blog!
Books
Changes
Contact
Guestbook
Quotes
Students
Webmasters

 

| Home | Top | Menu | Quick Links |

© Changing Works 2002-
Massive Content — Maximum Speed