While I monitor internet trends and social media memes, they rarely break through to be business-relevant. One might have.
Fast-food fans were upset when Wendy’s announced they would test surge pricing, a strategy to raise prices during busy times. While dynamic pricing is becoming more common, customers may not always appreciate it. Wendy’s clarified that they would use digital menus to change offerings and offer discounts during slower times. Still, coverage focuses on carefully considering customer reactions and implementing dynamic pricing.
Why do we care?
Dynamic pricing is both natural and very legitimate. Coupons? Happy Hour? Specials? Different pricing on Uber Eats versus in-store?
It’s about perception. If it’s about savings – IE, prices are cheaper during low-demand times – customers embrace getting value. Customers push back if it’s perceived as predatory during high-demand times. The technology is not the headline. The communications are.
