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Dynamic Pricing

What is Dynamic Pricing?

Dynamic pricing, usually included as a feature of CPQ software, adjusts prices automatically (on the fly) as customers or sales reps add and remove product options during the configuration process. Dynamic pricing is also a pricing strategy in which a business sells the same product at different prices based on current market conditions. The strategy is commonplace in the hospitality industry, where hotel room prices are in a constant state of flux. And in the transportation industry, where public transportation tickets are more expensive at peak times, and taxi companies charge “surge prices” in response to high demand in a specific locale.

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