Dynamic Pricing: Not Another Discount Tool
Dynamic pricing lets you set your prices to shift up or down based on changes in demand for your classes. What sets dynamic pricing apart from discount pricing tools is that you maintain full control of your prices. It’s easy to customize, test and adjust at any time.
Recommended thresholds for dynamic pricing are based on a number of factors, including the services you provide, the number of class spots you have available, the day of the week, class times and historic surges or lulls in business.
Dynamic pricing is a cornerstone of MINDBODY’s updated consumer app, set to launch this spring.
Prices that evolve with your business
The ideal price for your classes can change from one hour to the next. Wellness trends shift, populations swell and shrink, seasons encourage or deter travelers and nearby competitors come and go. These are key indicators of the benefits of proactively adjusting your pricing structure and static pricing is a tell-tale sign you’re missing out on revenue opportunities.
The market is constantly shifting, correcting and finding new ground—and you should be too.
The earliest versions of MINDBODY’s dynamic pricing functionality have already rolled out to select regions—and customers are finding success when they adapt their prices to account for demand.
For example, Elevate Training has discovered all they have to do to boost revenue is set their minimum and maximum prices to a range they’re comfortable charging customers. That’s it. There’s no undercutting their existing customers or upselling new, potential long-term customers—everything is within their control. And if they don’t feel comfortable changing certain thresholds for classes that are well-attended by already-loyal customers, they don’t have to.
Dynamic pricing lets you determine the classes, how many spots to offer and the price range. It then shows results giving you the best price within your range to offer at any given time.
"We love the ability to control our min and max price,” says Bekah from Elevate Training. “There is a lot of control, so we never feel like we’re undercutting our business."
The real value of dynamic pricing over discount tools is being able to set prices based on research and results and maximizing every hour of every day.
Change is good: for your business and your customers
Business owners already using dynamic pricing say the feature makes it easier for them to set the highest price possible for their services, without turning off existing customers. The key is to determine and meet—not exceed—consumer demand.
Businesses can audition pricing and, if they don’t see a surge based on dynamic pricing, can decide against changing prices.
With dynamic pricing, the future is up to you.
Although this blog offers business advice, this content is for general informational purposes only—it is not intended to replace the guidance of a licensed legal or financial professional. Information created by third parties that we may link out to or feature on our site is not endorsed by us and remains the responsibility of such third parties. MINDBODY assumes no responsibility for errors or omissions in the content.