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Posts Tagged ‘Dynamic Pricing’

Dynamic pricing is the process of increasing the price of a product little by little over a short amount of time.

Let’s say that you’re going to sell a digital book for the price of $25. Using dynamic pricing you would increase this price in small increments over the course of a few days as such:

• Day 1: $25
• Day 3: $30
• Day 5: $35
• Day 7: $40

And so on until you reach your top dollar threshold.

Obviously when people purchase a product, they want it as cheap as they can get it. If you’re offering a great product at a very low introductory price, then you’ll find many people want to purchase at this price. You will get amazing results from using this idea just by itself.

But here’s the caveat…you absolutely must adhere to your own standards. You cannot use this tactic simply to get more sales and your asking price for the product must end up at the fair market value of the product.

For example, if you’re selling a 15-page report and asking $67 for it, you won’t see many people rushing to purchase that from you. If, however, you are selling a 198 page digital book for $67 and offering it at $37 for the first few days, then you’ve got yourself a winner.

Here are some benefits to using this kind of approach. And for the record if you think this is unique or questionable, think again. How often did you get bombarded with Christmas advertising this past holiday season? “Get in before the hours of 6 AM – 8 AM and get everything for 60% off!” or “Act today and we’ll throw in whatever“.”

• Everyone wants to get in at the lowest price possible so your customers will definitely take notice.
• They’ll know that they need to act fast or else they’ll lose the opportunity to purchase the product at a lower price.
• It is the best way to create an immediate call to action. A call to action is where you tell your customer’s what exactly it is that they have to do in order to get the lower price.
• It also creates a sense of anxiety in your customer. If they want a lower price they’ll have to act now and if they don’t, they’ll end up paying more for the product.

As we’ve touched on already, this is not something new in marketing. It’s a great way to get people introduced to your product while at the same time offering them an incentive to purchase.