Dynamic Pricing: Common Myths Dispelled
Nick Boyer,
The UK is in the midst of an inflation crisis: with rates soaring, inflation is forecast to hit 8% by April 2022 according to economists. Due to a combination of factors, including the fallout from Covid, Brexit and supply chain disruptions, companies are experiencing a dramatic rise in their input costs, due to the price of transport and materials alike rising. Rather than just affecting consumer companies, B2B organisations are also feeling the hit. For all businesses, profit margins are at real risk of being eroded very quickly.
In this context, businesses have no choice but to adjust pricing with a dynamic and flexible approach. When there is such extreme fluctuation in the market, companies cannot keep prices the same without either squeezing the customer or sacrificing margins. At the same time, manually adjusting prices in reaction to every fluctuation, amounting to multiple times a month, is time-consuming and also inaccurate.