Building Models for Dynamic Pricing

If you are looking to apply dynamic pricing models to your business, to benefit from the continuous updates and adjustments to market factors, then RevBeam can help. Models can take various forms and include a number of parameters.

Here is an example from Stratinis, using their price optimization software:

The typical dynamic pricing model includes:

• Input parameters, relating to customers, products, demand, supply, competition, etc
• The actual engine itself
• Parameters through which the engine is adjusted
• Output parameters, typically price, but e.g. also permissable discounting levels for the staff
• Self-learning / model adjustment: based on whether the outputted price delivers a sale or not, the model can be taught to adjust itself.

Such dynamic pricing models bring a lot of benefits, including ability to quickly adapt to changes in market conditions (or sometimes to ignore them where humans might have fallen for a panick reaction), optimization of prices and avoidance of human errors.

At RevBeam we can help you build a dynamic pricing model for your company. It is typically done over a 3 week period, where we analyze existing data and factors impacting your pricing or competitive pricing. This combined with two workshops with your team then in the end of the 3 weeks then yields a complete model, ready to use.