Dynamic pricing is the practice of pricing items based on supply and demand or the customer’s perceived ability to pay. The hospitality, travel, entertainment and retail industries have deployed this methodology for years. As more data on buyer behavior is becoming available, other industries are rapidly catching up on this pricing strategy.
Companies who are experimenting with subscription and usage-based models are realizing gains from flexible pricing scenarios ranging from simple recurring fees to consumption-based tiers, tapers, pooling, thresholds and more. The ability to support dynamic pricing creates an infinite number of monetization strategies to maximize revenue and speed time to market.
The TRACT® platform, with its robust usage and rating engine, applies any pricing model in real-time as customers consume products and services. You can easily modify existing offerings and quickly launch new products directly from within the TRACT product catalog.
The dynamic pricing capabilities within TRACT can do the following:
- Quickly bring new products, services and offers to market
- Rapidly deploy unique pricing schemas
- Systematically manage complex pricing and discounting programs
- Effortlessly scale from simple subscriptions to tiered or usage-based models
- Manage subscription lifecycle including pricing and terms for recurring charges
- Create time-bound discounts, promotions and free trials
- Develop targeted programs for unique cross-sell and up-sell opportunities
- Create marketplaces and price lists for various distribution channels
- Set multiple commercial price lists based on characteristics (e.g., reseller, distributor, regional sales territory, country) from a single product catalog
- Automatically handle adjustments entered between billing periods