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Dynamic Pricing

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Adam Mourad

on 3 June 2015

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Transcript of Dynamic Pricing

Dynamic Pricing
Situation Analysis
Supply / Demand & Equilibrium
State of Virginia High Occupancy Toll Lanes
Electronic Shelf Ticketing
Relationship with Customers
Dynamic Pricing
The Road Ahead

Adam Mourad
Deflation in Australia has made lifting prices as a mechanism for achieving growth difficult.
Suppliers in Australia can no longer rely on annual price rises to grow and boost profitability.
The levels of real household disposable incomes have greatly affected the industry where in periods of low disposable income consumers are more likely to do away with luxury items and only purchase basic products.
Historical gradual price rises are a major contributor to pathway created for European & American discounters.
Aldi and Costco entered into the marketplace.
Using price as the differentiator to major local retailers to attract the bargain hunting customer.
These discount retailers’s offer a greater range.
Private-label products cheaper than branded merchandise
Consumers now have a way to enjoy luxury products without the burden of a high shopping docket
The Rise of the Discounters
Dynamic Pricing is defined as the practice of pricing items at a level determined by a particular customer's perceived ability to pay

It can be used as a possible lever retailers can use to drive growth in their organisations.

It has changed the way in which consumers shop and it is no longer a matter of just where to shop but also when to shop.
The Supply Curve
The Demand Curve
Flexible Pricing

Raining today? Do an instant special on Umbrellas
Cost Increasing?

Immediately fine tune prices

Electronic shelf tickets make
it easier to implement dynamic pricing
Price Integrity

Be 100% sure that price labels display the correct price at the shelf edge.
Full transcript