What do you think of 'Dynamic Pricing'?
 

NEW YORK -- Down a shot of tequila at The Blind Burro and the second round may cost you more. Or less. It all depends on what everyone else is drinking.

Tequila prices at the San Diego bar and restaurant can change every five minutes based on demand. If more people order one tequila brand, the price of another might drop. Software, created by Los Angeles-based The Drink Exchange, tracks what drinkers buy and flashes the changing prices of more than two dozen tequila brands on TV screens hung on the bar's walls. On a recent night, a shot of Espolon Blanco tequila was $7.75 one minute and fell 50 cents to $7.25 a few minutes later. At the same time, another brand rose a dollar to $12 a shot.

The quick change in prices is known as dynamic pricing. It's a strategy airlines have used for years, charging more for flights on summer weekends or ahead of Thanksgiving and other busy holidays. Cab hailing app Uber does it, too, raising fares when more people need a ride. Now other industries are doing it, including zoos, sports teams and producers of live shows, and even more will likely join them thanks to software that can crunch data and tell businesses when prices should go up or down. The software companies say they have seen rising demand for their services. The Drink Exchange, for example, is in more than 20 restaurants or bars.

"In the old days, dynamic pricing was thought of as a pricing technique used in fixed capacity industries such as airlines," says Rafi Mohammed, a pricing strategist. "But the new thinking is dynamic pricing can be used in any industry where demand or supply fluctuates."



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:2 cents:I hate this business model, hotels / airlines do it and its fucking annoying..

Lately around here it almost seems like gas companies are using it - the price at the pumps is fluctuating wildly all over the place. I've been noticing gas prices skyrocket during rush-hour (8am-9am and again between 4pm-6pm)...and then drop back down in between those hours.

sounds really bad & totally weird!?

You go to a bar knowing your drinks prices for rounds when out with mates, it's like a really stupid idea & I've never heard of it until now.

Thanks for the share :thumbsup

Nothing new nor unusual, it's a simply matter of exploiting demand. That is why happy hours are invented to sell on time when there is not much demand.

that's pretty cool

happy hour in the bar near me sells a liter jug for 2.50 euros between 5 and 6, not sure how I know that :winkwink:

http://www.ooyuz.com/images/2015/7/17/1439867324401.jpg

http://www.nydailynews.com/new-york/...icle-1.2636591

Creative price gouging assumes a captive customer or that every seller is doing the same thing.
"Gett has been trying to undercut Uber's dominance on the road with an anti-surge pricing campaign. (Gett)"



Most customers have options available to buy somewhere else. Also, your customers can learn to game your pricing stratagem and consume the same quantity at a lower profit to you -- this depends on what you sell.

I noticed this the other day where I live. They will also increase the prices on days that are nice and sunny after a few days of rain because they know people are going to want to get out and enjoy the weather.

Used to hang out at the Blind Burro all the time! Love that place.

Electric power in my area is going to do this with their new Smart meters.