Make Use of Dynamic Pricing
One of the latest trends in technology is the rise of dynamic pricing. With dynamic pricing, you can arrange to have your prices change based on demand, competition, season, and other factors. This takes some of the guesswork out of setting prices for your small business. Companies like Wiser provide dynamic pricing solutions that can monitor and analyze trends, and then reprice retail products in real time. This means that you can have your prices automatically reset, based on parameters you provide.
While this isn't something that I would likely use for my service-based business, it could be a great feature for someone who sells products, especially online. It's one of the ways that you can learn from Amazon -- a leader in dynamic pricing -- to enhance your own business. However, you don't need to let your business get run out of cybertown by Amazon. There are ways to use dynamic pricing to your advantage, and thrive, even in a world where mega-retailers like Amazon and Walmart exist online.
"Advanced tools such as machine learning algorithms maximize sales while maintaining margins," says Shpanya. "Wiser, for example, partners with merchandisers, marketers, and buyers alike by providing them with the necessary tools to build and sustain real business value."
The best dynamic pricing providers will allow you to set a floor with your pricing. That way, you can make sure that you regularly cover your costs when it comes to pricing. Other than that, your dynamic pricing solution can take care of everything on its own, allowing you to focus on other aspects of your business.
Setting prices for your small business is rarely easy. However, with a little research, and with help from emerging technology, it's possible to set prices that customers are willing to pay while providing you with the profit you need to succeed long-term.