Dynamic Pricing

A pricing strategy where prices are adjusted in real time based on demand, competition, time, inventory levels, or customer segments, rather than remaining fixed.

Dynamic pricing allows businesses to capture maximum value when demand is high and stimulate demand when it is low. It is standard in travel, hospitality, and e-commerce, and increasingly used by solo founders and small businesses.

A consultant raises her rates every time her waitlist exceeds three months. She uses demand signals to justify price increases rather than setting a fixed rate and leaving money on the table.