The age of the machines is coming. Better hop on board or get left in the dust. Artificial Intelligence (or AI aka a fancy robot/software that does the work for you) is no longer a strange term. It’s the future. From apps to prosthetics to robots, technology has progressed rapidly and only continues to advance. So, why can’t AI help you manage dynamic pricing?
What is Dynamic Pricing and How AI Can Help
We’re going to keep this short because we’ve gone in depth about the different types of dynamic pricing and what it is, its quirks and our solution previously. So, basically, dynamic pricing is the concept of pricing products on the changing environment of the current market demand. You may have heard its nicknames: real-time pricing, surge pricing, or time-based pricing. They are all under one umbrella — dynamic pricing.
With dynamic pricing, you have to watch your competitors’ prices, your customers’ behavior, how low your margins are, and the period in which you are selling the product. There’s enough to consider that AI may be the solution to help decrease your load. AI can help you take those considerations and determine if prices will hurt your bottom line, if certain customers are buying in bulk or one product repeatedly, or if the timing is right to put a product on sale. AI can help you make educated decisions about what to price your products and when.
Here’s How RPM (Our Pricing Management AI) Can Help Optimize Your Pricing:
RPM Will Give Specific Customers Special Pricing Automatically.
Dynamic pricing is customer driven. You can make prices higher or lower for certain customers based on where they live, their household income, what they’re looking to buy, or preferred items and categories of products and services. RPM allows you to create filters so you can group customers together, give them special pricing, and RPM will automatically make those adjustments for you. All you have to do is copy an existing price sheet or create a new one if your heart so desires, change the prices to what you want, and voila! Specific customers will automatically receive those set prices.
RPM Gives You Strictly Facts — No Guesswork — with How Market Trends Affect Your Prices.
Being a stalker takes work, especially when you’re stalking the everchanging market trends. You have to search through the news, customer reviews, competitor websites, and annual reports and survey to learn about what’s going on in the weird, wild world. Although RPM isn’t designed to be a stalker, web scrapers are and can help shave time searching for inflation, sales, price changes, supply shortage, etc. Once market trends are determined, RPM can step in and test pricing scenarios. Give RPM what you or your web scrapers have caught and test it to see if that price change will hurt or benefit your margin and/or the base price.
Is AI Truly Worth It?
A resounding yes! AI will definitely make managing your prices much simpler and easier for you. Whether you go with RPM or another option (is there that many out there?) is up to you. We can tell you that RPM saves you time, money and pricing errors. So, if you want to start progressing towards the machines, then book a one-on-one demo or contact us.