Dynamic Pricing
Dynamic Pricing refers to a fluid pricing scheme between the buyer and seller, rather than the more traditional (and more recent, over the last 100 years) fixed pricing. Dynamic pricing is a legacy from the past, that has losts its prominance with the advent of the industrial revolution and mass marketing and mass communication. Before the industrial revolution, most trade occured in markets, with many buyers and sellers bartering for goods. Current and evolving models for dynamic pricing include the auction pricing system, group pricing system and reverse pricing system. Typically these systems will better reflect the true market value of the product involved, but also require additional work on the part of the purchaser. These systems will evolve more rapidly when better standards are established and when intelligent agents evolve. Not all markets will be served well with a dynamic pricing model.
Maximizing Business Potential
