Finland’s leading newspaper Helsingin Sanomat wrote about dynamic pricing (in Finnish)
https://www.hs.fi/suomi/art-2000010591618.html


The article well highlights the benefits for better resource utilization, but raise some questions on the consequences for consumers and companies. They also highlight the risk of prices increasing too high.

A few points to complement the article:

1. For many of Priceff customers dynamic pricing has lowered their total average price. This is due to new customers and added volume during silent times, with cheaper than earlier prices. That means consumers, on average, get the service cheaper than before. 😁

2. In Priceff, and I am sure in all other pricing systems as well, the maximum price is set by the company using dynamic pricing or a revenue management software. So, during high demand, the prices don’t “accidentially” go too high but they go just as high as the settings allow. So overly high prices of concert tickets, train rides or other services are based on the strategy of the company – not due to dynamic pricing going wild. 💎

3. The article also mentions dynamic pricing for restaurant dishes. Here I would refer to a great discussion I had with Sherri Kimes that one key factor in dynamic pricing and revenue management is that the consumers have choice. You always have more choice when you order something online vs. after already travelling to some location e.g. for food. For on-site dynamic pricing I recommend starting with dynamic discounts to steer customers to buy such products or services that have poor demand and e.g. might be going bad or wasted if not consumed soon. 🍕 🍔

We are happy to discuss these topics more in an online call or per email.

You find our contacts here: https://www.priceff.com/contact-us/

Greetings,
Heikki / Priceff