What is dynamic pricing?
To be dynamic is to be lively.
Yes. You can make retailing lively by using a pricing strategy that varies according to certain constantly changing parameters like demand, supply or customer behaviour. For example, what if the price of your product changes based on what your customer does or chooses, without your interference? That’s what we call “smart” today. So, in short, dynamic pricing is smart pricing.
Why Should you use Dynamic Pricing?
The Graph signifies that dynamic pricing allows you to set multiple prices for a single product based on various conditions. A product with dynamic pricing is more likely to be sold than a product with regular static pricing.
Apart from the higher chance of sales, you get:
- Flexible pricing
- Steady profit
- Automation of prices - No need of repricing
How to give dynamic pricing deals on WooCommerce?
Your WooCommerce store can now benefit with dynamic pricing. Our best selling WordPress discount plugin, Discount Rules for WooCommerce can help you with that. Dynamic pricing or multi-tier pricing is much simpler to implement, only if you use the right tool.
Discount Rules for WooCommerce is:
- Easy to use
- Easy to understand
- Low cost (Free version available as well)
- Round the clock Customer support
- Highly customizable
So, go ahead and install Woo Discount Rules to get started now! Want to learn how to provide dynamic pricing in detail? Use our step-by-step guide and have your new pricing deal up and running in no time.
What are the advantages of dynamic pricing deals?
More Sales. More Profit. More Comfort.
Imagine that you want to increase the sales of a particular product, say a “Cap”. When you fix the pricing as $5 for a cap, the sales would be regular.
More sales will lead to a boost in cash flow and profit of your store. The profit could be huge or small based on what you sell. But, an increase from the normal profit is assured.
This is simple. Dynamic pricing is smart. You just have to set the conditions based on which the prices vary, sit back, and relax. The rest will be taken care of automatically. You do not have to worry about changing the price again and again.
Bonus! Fast inventory movement
You almost guessed this one, right? Clearly, the stocks are going to move fast if sales is high. You could use this chance to sell the slow moving products in the discount as well. A win-win for you and your customers.
Now, imagine that you introduce a discount for increasing the sales and your discount goes like this - “Buy 5 Caps or more and get 20% discount”. Now, this is a great news for people who want 5 caps or more, but what about the ones who want 1 or 2 caps? This is where dynamic pricing comes into play.
What if you set up a pricing like this:
- “Buy up to 3 caps and get 10% discount”
- “Buy 4 to 7 caps and get 20% discount"
- “Buy more than 7 caps and get a 35% discount” - and apply all of them in one step?
There is a chance of people buying 1 to any number of caps depending on how many they want. The rule attracts the people who want to buy 1 cap as well as the ones who want to buy 10 caps, and everyone gets a discount.
Since there is more discount for a higher quantity, there is a chance that a person who wants 3 caps may end up buying 5 caps. Automatically, the sales are on a rise.