Dynamic Pricing
Outprice competitors without losing profit. Sell goods and services for the right price at the right time and get the best ROI based on the current supply, demand, and market status.
CHALLENGE
The world of logistics is very competitive, every company is attempting to outprice their competitor.
Without AI & big data, one only has a very limited idea of customer behavior and their willingness to pay which often leads to slow-moving inventory and customers lost.
The prices for a given route, a service or a product depend on a number of factors such as a level of demand, time, weather conditions, and even geopolitical issues which is impossible to calculate in real-time without AI.
SOLUTION
AI made it possible to follow up many important aspects, both internal as externally, and suggest favorable price levels.
It's the concept of selling the same product at variating prices based on the dynamics of the current market demand.
Those who understand what can be offered realistically will have an important advantange over their competitors.
Alternative names are: surge pricing, segmented pricing, real-time pricing, peak pricing, penetration pricing and time-based pricing.
VALUE
Increased profits
Improved customer & market understanding
Improved pricing strategy (right price at the right time)
Improved employee and overtime management (which days to expect heavy usage of their services)
Improved ROI (based on the current supply, demand, and market status)
Improved sustainability
Reduced inventory requirements & costs
Reduced stockouts, deadstock and backorders