–Dustin Robertson, CMO Vegas.com and former CMO, Backcountry.com
Dynamic pricing is when prices adjust depending on many factors to capture the most value. In 2003, Amazon started testing different prices aggressively. Newspaper stories reviled it for the horrors of messing with the American consumer. Today, consumers expect prices to change to reflect market realities. Many companies, such as Amazon, change prices every 15 minutes. Put another way, they learn something new about consumer behavior and demand every 15 minutes. If you’re not learning from consumers and changing your prices to keep up with market demand, how long will you be able to compete?