There are many other everyday examples of dynamic pricing: If fruit has been left on the supermarket shelf for a while, it is usually sold at a discount. When fuel prices rise in time for the summer vacation and beach loungers become more affordable in rainy weather, we can also thank flexible prices for this. Whenever (regular) customers receive a discount, this is also an example of a dynamic price adjustment. Many ski resorts entice visitors in poor weather using discounts – and in the USA, ticket prices for sports events, for example, often vary depending on the weather, day, chances of winning or the appeal of a game.
These examples largely concern established dynamic pricing models that almost everyone comes into contact with daily. They all share one thing in common: the price changes over time, depending on the competition or as a result of strategic considerations and factors which the retailer considers suitable for maximizing profit or improving customer retention – ideally both at the same time.
The strategies are varied, but the goals tend to be the same: apart from maximizing profit, providers use dynamic prices particularly to increase customer retention – such as with discounts. After all, if the customer believes they’re getting a good deal, they are more likely to come back.