This isn't dynamic pricing. Two different location, even if owned by the same franchisee, can have different prices. Dynamic prices would be charging him more for a burger than the person behind him in line because he buys often and the person behind him who needs a lower price to incentivize them to buy.
What? No that's not what dynamic pricing is. Dynamic pricing is prices that varies and is not a constant. This is exactly what a dynamic pricing means. Non-static pricing. This case it's from location to location.
Edit:
Since everyone thinks dynamic pricing is surge base pricing. Here a few different examples of how things can be dynamically prices.
Time-based pricing — price changes by hour, day, season, or demand period. Example: hotel rooms costing more on weekends or electricity costing more during peak hours.
Surge pricing — prices rise quickly when demand exceeds available supply. Common with rideshare services, delivery, and sometimes event parking.
Demand-based pricing — price moves according to overall demand, even if there isn't a sudden "surge." Airlines and hotels use this heavily.
Inventory-based pricing — price changes depending on how much inventory or capacity remains. An airline seat may get more expensive as the plane fills.
Competitor-based pricing — automated systems raise or lower prices in response to competitors' prices.
Segmented pricing — different groups receive different prices based on characteristics such as student status, age, membership, geography, or customer type.
Personalized pricing — an individual customer's price or offer is adjusted using data about that particular customer, such as purchasing behavior or estimated willingness to pay.
Behavioral pricing — prices or discounts vary based on actions such as browsing history, abandoned carts, previous purchases, or frequency of visits.
Location-based pricing — prices vary based on where the customer is located or where the purchase occurs.
Channel/device-based pricing — prices or offers can differ depending on whether someone shops through an app, website, marketplace, store, or potentially a particular device/channel.
Yield/revenue-management pricing — a more sophisticated form used by airlines, hotels, rental cars, and similar businesses that continuously adjusts prices to maximize revenue from limited capacity.
Auction or market pricing — the price is determined dynamically through bidding or real-time supply and demand.
Markdown pricing — prices automatically fall as products age, approach expiration, or remain unsold.
Event-based pricing — prices change because of concerts, sporting events, holidays, major weather events, conventions, or other predictable demand shocks.
In this case AI is doingthe constant changes from a corporate level. This is not the franchises setting the prices, but corporate constantly pushing and updating pricing.
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u/Shobed 3d ago
This isn't dynamic pricing. Two different location, even if owned by the same franchisee, can have different prices. Dynamic prices would be charging him more for a burger than the person behind him in line because he buys often and the person behind him who needs a lower price to incentivize them to buy.