The new pricing model aims to improve return on capital and working capital turnover.
YIT has been piloting a dynamic pricing model for apartments and parking spaces in Russia together with Priceff.
Housing prices in Russia typically change during the construction phase as demand varies.
“In order to improve the working capital cycle, it is important that pricing can be adjusted according to demand. It was great to have the opportunity to test how new technology can help real estate development in this respect,” says Jukka-Pekka Uuskoski, Senior Vice President, Business Development at YIT.
In the pilot, new homes were priced according to demand, utilising Priceff’s auto-dynamic pricing service (API cloud service). At first, the prices were updated once a week and, later, twice a week. The pricing service was able to find and adjust the prices to match the demand at each moment.
The pilot was so successful that YIT and Priceff are exploring the possibility of continuing the co-operation commercially.
“As far as we know, this is the first time that auto-dynamic pricing based on actual demand has been used in the pricing of new homes. Our goal is to help the construction industry to implement more efficient pricing methods,” says Priceff’s CEO Riku Aakala.
Jukka-Pekka Uuskoski, Senior Vice President, Business Development, Housing Russia, YIT Construction Ltd, +7 916 362 5147, email@example.com
Riku Aakala, CEO, Priceff Oy, +358 41 547 4353, firstname.lastname@example.org
Hanna Malmivaara, Vice President, Communications, YIT Corporation, tel. +358 40 561 6568, email@example.com