How Dynamic Pricing Helps Your Business
By Katherine Wernet
Dynamic pricing is a strategy that allows for flexible prices based on different factors. If you’ve ever tried to purchase airline tickets for a holiday weekend trip, you’ve been very aware of dynamic pricing. As more people want to fly at that time, airlines are able to charge higher prices for tickets. A quick search into mid-week flights will show lower prices, reflecting the lower demand for travel during the work week. It’s hard to remember a time when flights weren’t priced in such a way; American Airlines was the first company to implement this strategy in the 1980s.
As technology has advanced, this strategy has expanded to other industries. Uber and Lyft use dynamic pricing as well—referring to it as ‘surge pricing’ during high-demand periods. Even Disney has started using dynamic pricing in an effort to even out attendance at Disneyland and their other parks, charging a 4% discount on low-demand days and as much as a 20% premium on the busiest days.
How can dynamic pricing help your fitness studio?
It would be difficult, if not impossible, to perfectly price your classes based on supply and demand manually. While you certainly have a general idea of what classes are the most popular, there are so many factors at play (weather, time, customer preferences and schedules, etc.). It would take extraordinary time and effort to price this way. With MINDBODY’s dynamic pricing, a variable pricing algorithm does this work for your fitness business and eliminates the guesswork.
Dynamic pricing through MINDBODY can help your fitness studio get closer to that perfect price so you can fill empty classes and increase returns on classes that are overbooked. You control it, and you watch your revenue grow.