“This was an exciting approach in a way that everyone are better off: Grocery stores and restaurants will sell more of their surplus meals for consumers with lowered pricing, leaving less meals being wasted.”
Food Waste Company ResQ Club implements Priceff’s autodynamic pricing on surplus food:
+ 11,7% revenue increase per published offer
– 14,4% decrease in food waste due to increased sales volumes
10 000+ offerings sold by 40+ food vendors
50 000+ fully automated price optimisations
Approximately 1/3 of the world’s food is wasted. ResQ Club provides a marketplace that connects surplus food vendors with consumers. However, a constantly changing supply and demand makes it challenging to price rapidly perishable food servings.
Priceff’s US patented autodynamic pricing aims to match supply with demand through efficient pricing. Imagine a stock exchange trading pricing with only one seller instead of multiple ones. Using only six fundamental pricing parameters, autodynamic pricing can easily be tailored to optimise tactical pricing in various business contexts. In the case of ResQ Club, it was configured to manage prices of food offerings that did not sell within one hour.
ResQ Club has been extremely happy with the results of autodynamic pricing. They continue to apply autodynamic pricing and have taken it as part of the service they offer to their ResQ Partners. Applying autodynamic pricing in ResQ Club’s context proves that pricing matters, even in lower price points. By aligning continuously tactical pricing with real-time demand, autodynamic pricing decreases food waste, provides cheaper meals for consumers and increases per meal revenue for ResQ Club’s partners and ResQ Club. The only real loser in the exercise is food waste.
“Thrilled to see an additional 14,4% reduction in food waste!”
Aku-Jaakko Saukkonen, COO – ResQ Club
Increasing revenue by decreasing waste with autodynamic pricing – Bon Appétit to that!