eCommerce Pricing Strategies Now and in the Future (or, How I Learned to Stop Worrying and Love Price Optimization)
Attention as a Resource
The second reason for companies to use dynamic pricing is time. It takes time, and more importantly, a lot of attention to continuously monitor the marketplace and change pricing in response to market conditions.
Attention is one of a company's scarcest and most valuable assets. Sure, manually changing prices due to market conditions is a good competitive strategy. You may have the money in your budget to approve a new pricing plan, but you may have to turn it down. Why? Because it will cost your company something else—something just as valuable as dollars—the constant monitoring and changing of prices will demand attention. A lot of attention, from one and quite possibly more of your employees. Employees only have so much attention to give, and so does an eCommerce manager. As a manager, you know that attention must be carefully invested to reach company goals. Or, in the words of Peter Drucker, "You can't manage what you can't measure."
Manual monitoring and price changing is a burden on you and your staff. But there are ways to do it with the help of technology.