I spotted this article about the link between e-commerce and inflation in Axios. Prices are no longer static – the idea of previous “menu costs” has been disrupted. Previously, if a restaurant needed to raise its prices previously required reprinting all of the menus. Now, if the menu is a QR code, it’s about changing a web page. Some physical stores are following suit, too, with e-ink displays or a restaurant changing prices depending on where and how it was ordered. However, as we pay less attention, we become less price-sensitive, giving companies more scope to raise prices. Prices have become much more dynamic.
Why do we care?
There are some real pricing lessons here for smaller providers. It’s my observation that many struggles to change their prices even yearly. Sure, I’ll observe that this article is consumer-focused, and I’m considering business engagements.
Still, there’s nothing wrong with being more dynamic with pricing for many smaller companies, especially micro-businesses. There is a difference between changing the price during a contract term and changing the price at the first sale. Why NOT make your initial price more flexible, allowing you to be much more nimble.