REQUEST A DEMO
This principle is most relevant to inventory which is in finite supply, perishable and subject to variations in demand. These indicators aside, there remain applications for this theory across many industry sectors.
With customers becoming increasingly price sensitive, time poor and tech savvy, this technology seeks to match this consumer evolution while enabling the operator to move with this change.
The technology is hosted within a web-application (web-app) which is tailored toward a client’s specific requirements. The core technology remains constant but there are variations to how it is applied or presented. The web-application will play host to the operator’s inventory where customers can view and buy online.
The dynamic pricing tool works through either an algorithm or management intervention. The operator has full control over the algorithm settings. These are:
- Starting price
- Parameters to sale (upper and lower limit)
- Anticipated sales in a given timeframe
- Rate of increase
- Rate of decrease
- Aggression factor
Importantly, the operator can alter these settings from anywhere with immediate effect. The algorithm can also be turned on and off at the operators discretion.
The platform facilitates direct management intervention which can be used at the operator’s discretion.
This may be used to reduce or raise the prices by a certain percentage for a set time period or add or remove a product. This can facilitate various sales push strategies or profit raising techniques with an instant connection to the customer.
The technology is controlled through an easy to use Content Management System (CMS). This allows the operator to alter any content or settings on the web-app with immediate effect.
OTF has chosen to host the technology on a web-app for a number of reasons. A web-app provides a multi-platform interface for consumers to use. As retail is increasingly based around smartphones and tablets, this is certainly a trend which operators want to match while keeping a simple desktop solution in place.
A web-app will also facilitate more accurate and live dynamic pricing through the optimised responsiveness provided by a web-server. If operators are in the market for an app based platform – a web-app is significantly cheaper and arguably more effective.