Dynamic Pricing Consulting. When to Reach Out for Expert Pricing Strategy Services?

Dynamic Pricing Consulting. When to Reach Out for Expert Pricing Strategy Services?

Krzysztof Suwada - January 5, 2023

Dynamic pricing is a pricing strategy that allows businesses to adjust their prices based on market and customer demand, competition, and other factors. It is becoming increasingly popular in today’s market, allowing companies to optimize their pricing in real-time and increase their profitability.

Dynamic pricing consulting services provide businesses with the expertise and tools needed to implement and optimize dynamic pricing strategies. These services can help companies to increase revenue, improve customer satisfaction, and make more informed data-driven decisions. In this article, we will explore dynamic pricing consulting services in more detail and discuss how working with pricing consultants can benefit your business.

What Is Dynamic Pricing and Its Importance in Today’s Market

Dynamic pricing is a flexible pricing strategy that rejects fixed prices for the sake of dynamically changing ones. It aims to maximize the company’s profits by constantly recalculating the given price based on current market conditions.

Dynamic pricing algorithms may consider different variables depending on how they were designed, the most common ones being current supply and demand, competition factors, and other factors that may affect their final margin. They use the time-based opportunity to calculate the perfect price points at a given moment. Some algorithms may also analyze shopping habits and other relevant behavioral traits in order to segment the customer and find the highest price they are ready to pay.

Static pricing (with single price point) vs. dynamic pricing (with multiple price points)

Static pricing (with single price point) vs. dynamic pricing (with multiple price points)

Today, the dynamic pricing model is slowly replacing fixed prices as customers become accustomed to it. The fear of their reaction was one of the main barriers stopping the companies from introducing this strategy. Now that it’s slowly dissolving, it is becoming a standard to use dynamic pricing, particularly in hospitality, transport, or logistics industries.

Reinforcement learning model for dynamic pricing algorithms

Reinforcement learning model for dynamic pricing algorithms

What Is Dynamic Pricing Consulting?

There are many ways in which dynamic pricing algorithms can work, and none of them works for everyone. To provide you with all the benefits we have listed below; it should match your brand identity and business objectives.

If you want to implement a dynamic pricing strategy thoughtfully, you should adjust how your prices are estimated to various factors. Among them are your company’s specifics, its niche, the markets you operate in, and customer habits. And that’s just the tip of the iceberg! Here’s where dynamic pricing consulting comes into the scene. As a service, it aims at maximizing the benefits of implementing the dynamic pricing strategy or improving the existing one with that goal in mind.

You may ask: why should I develop my own dynamic pricing strategy independently when I can use something which is already available? Companies that offer their services or products through marketplaces or booking platforms tend to rely on the dynamic pricing solutions provided by those, forgetting that they are designed to serve everyone.

As a result, they will never make the most out of dynamic pricing with these models - quite contrarily. They could actually lose their customers. For instance, the most commonly used dynamic pricing models tend to align the prices with the demand. Some customers may migrate to other companies in reaction to such price surges, considering it disappointing and not in line with the brand’s image they used to like.

Dynamic Pricing Consulting and Its Role in Helping Businesses Implement and Optimize Dynamic Pricing Strategies

That is only an example, but it teaches us that dynamic pricing requires a deep understanding of your target groups and markets you are providing your services or products. At the same time, you also need to understand what actually constitutes a price (in your specific case and in the case of your competition) and how different factors impact it.

Developing your own model and strategy is a time-consuming process that generates costs, so it is better to plan things well at the beginning to avoid unpleasant surprises later. Dynamic pricing consulting helps companies with that.

Through consulting sessions, they first analyze and establish their business objectives and margin expectations to know which direction their strategy should take. For instance - it may adopt an entirely different shape when its main objective is to gain a competitive edge than when they aim at dynamizing sales during low-demand periods.

Types of Dynamic Pricing Consulting Services Available

Depending on your specific case, you may need different dynamic pricing consulting support. In our daily work, we usually provide the services listed below. Let’s take a closer look at each of them.

Dynamic Pricing Strategy Development

Many companies reach out to us when they want to implement a dynamic pricing strategy but don’t know where to start. We conduct an AI Design Sprint workshop focused on pricing strategy with them to understand their specifics, needs, and goals and research how they have approached pricing before. This aspect is essential when it comes to the success of your pricing strategy.

Radical changes may be a double-edged sword. If your pricing patterns change 180 degrees from day to night or lose consistency with the brand image you have been building so far, the dynamic pricing strategy may not bring success but rather the opposite. The pricing consultants help you carry out that transition smoothly and without disappointing your clients’ expectations, getting you to pricing excellence smoothly.

When we already have a deep understanding of your objectives and benchmarks, we draft a strategy and assist customers with its implementation. It may include custom dynamic pricing model development, but not necessarily - it all depends on the conclusions we come up with at the first stage. Sometimes, all you need to do is use the already available tools and integrate the clients’ systems with the existing software or make the data processing more efficient.

Pricing Data Analysis

In order to implement a successful dynamic pricing strategy, you need to gather and process a lot of data to understand the correlations between sales and pricing patterns. And when we say a lot, we really mean it! Processing and extracting insights from these large datasets requires advanced data analytics skills and tools.

As your pricing strategy consulting partner, we can build a data analytics pricing model for your specific case to identify trends that may impact your price and find the most profitable price points in different scenarios and target groups. Through thorough data analysis, you will find the relevant benchmarks (competition/perceived value) to maximize the chances of success of your pricing strategy and give you a competitive advantage.

Should you go for value-based pricing, cost-based pricing, or competition-based pricing? The answer is in your data. These insights can serve you in the dynamic pricing strategy development or improvement and help you choose the most adequate tools.

Custom Dynamic Pricing Software Implementation

Custom dynamic pricing software development and implementation are one of the most challenging types of service, but we love challenges! Here, we get to consolidate all our competencies and skills, developing custom models and data processing systems that help our customers draw relevant insights from different data sources: their own shop, marketplaces or booking platforms, CRMs, social media channels, and so on.

Based on the specified objectives, we build dynamic pricing models that estimate the optimal price points based on the relevant variables identified through data analysis and update the prices across channels with an established frequency. It is possible to implement different scenarios for different channels, considering their particular characteristics. For example, companies who have their own online shop but also sell via marketplaces can manipulate the variables to adjust to the customer expectations on each platform.

Benefits of custom AI software development and further integrations that bring pricing power

Benefits of custom AI software development and further integrations that bring pricing power

Pricing Tools Integration

Instead of developing a tool from scratch, we can also help you with integrating the existing pricing tools into your systems so that you can update your prices smoothly and automatically, as well as acquire and process data in order to improve your pricing strategy.

Companies often reach out to us because they have a particular pricing tool in mind or they have even already invested in it, but they need someone who will integrate it with their CRM, ERP, DMS, and eCommerce channels.

How Dynamic Pricing Consulting Can Benefit Your Business

Dynamic pricing can bring multiple advantages when properly implemented. You already know what the dynamic pricing consulting services are and what exactly they may consist of, but why would you actually reach out to them? Here’s our insight on that.

Increased Revenue and Profit Through More Accurately Pricing Products and Services

Dynamic pricing benefits companies in various ways, helping them adjust to changing market conditions. This way, they can keep their margins the highest possible while keeping prices relevant. Having them fixed may compromise their financial stability in the dynamically evolving market. Now that unpredictable surges and drops in demand are becoming something common, and dynamic pricing is the only strategy that allows for keeping prices accurate and relevant.

With a flexible approach, you don’t have to choose between artificially inflating the prices and risking losing customers or lowering them and compromising your financial safety. You can have a cake and eat a cake, keeping your sales high. The algorithm automates the estimations, always keeping them accurate. It is hard to achieve that with a manual approach.

Improved Customer Satisfaction by Offering Competitive and Fair Prices

With the increasing popularity of dynamic pricing, more and more companies choose this strategy, not fearing customer rejection anymore (in the past, this aspect was causing doubts). As a result, the customers get accustomed to that dynamics and learn to benefit from it. If the low price is their priority, they can monitor the changing prices, finding the most affordable moment to buy. Fixed pricing deprives them of that possibility.

Effect: clients actually start expecting the companies to adopt this strategy. If the brand doesn’t do that, they may migrate to another one. Here’s how the domino effect forms, making dynamic pricing an essential tool to ensure customer satisfaction.

In the last decade, we saw a shift in approach to dynamic pricing, before approached with a dose of suspicion, and now - considered fairer than other models. Many business leaders holding the biggest pricing power in their niche have decided to migrate to this model.

At the same time, dynamic pricing becomes a tool for gaining a competitive edge in an increasingly competitive market. Algorithms that use competition prices as the main variable can help businesses keep their own prices relevant and attractive, fuelling sales and maximizing their profit.

Enhanced Data Analysis and Decision-Making Through the Use of Advanced Software and Tools

Companies can learn a lot in terms of pricing based on the data they have access to through their ERPs, CRMs, e-commerce, and social media channels. The key is to process it in the right way and structure them based on relevance. With appropriate software and tools, they are capable of extracting precious insights from data and using it in practice in order to improve their dynamic pricing model and maximize the chances of sales. The relevant customer data may include the following:

  • their frequency of purchases,
  • the way they react to various price points,
  • other behavioral patterns (do they tend to wait for a lower price or buy right away),
  • the number of products they compare before making a purchase,
  • the other brands they buy from.

Dynamic pricing also contributes to the overall efficiency of the company’s processes while reducing its environmental imprint. While it may fuel consumption, which is objectively not environmentally friendly, it can also help logistic companies reduce empty miles.

Dynamic pricing also helps businesses survive low-demand periods, stimulating sales by finding price points that are attractive enough to convince a particular user. Algorithms may lower the price, but they will keep it as high as possible in order to extract the maximum margin.

Choosing the Right Dynamic Pricing Consulting Firm

When your mind is already made up, and you want to implement or improve your dynamic pricing strategy, it’s time to choose the partner in crime! It does not have to be a tough nut to crack if you stick to a few rules. Here’s what we recommend to take into consideration.


You obviously expect your dynamic pricing consulting partner to know what they are doing. Nobody wants their project to be a playground to learn on. Dynamic pricing is a complex domain that requires a deep understanding of how prices are actually formed and how they impact your customer decisions.

To avoid issues, make sure to choose a company with extensive expertise in dynamic pricing, not only in consulting but also in strategy development and implementation.


Regardless of what you are working on, experience is always the most significant criterion in choosing your partner. Verify the portfolio of the companies you take into account - the more projects involving dynamic pricing, the better.

Make sure their consulting expertise is backed with practice - that’s the best way to learn!

Novel Technologies

In order to develop and implement a successful dynamic pricing strategy, your consulting partner needs to know the new technologies both in theory and in practice. AI and machine learning expertise is a must to polish the dynamic pricing models that draw relevant insights from data and estimate the prices based on them, getting better at their estimations with time. AI-specialized company with many dynamic pricing projects in their portfolio is what you are looking for.

End-To-End Offering

Most companies that reach out to us do not have a team with expertise in dynamic pricing or the existing strategy in use and need support from scratch. Working with them in the end-to-end model, we take all dynamic pricing-related processes on us, letting them focus on their core activity.

End-to-end teams are more independent and can provide you with coherent results. This way, you also do not have to worry about the knowledge transfer and communication between teams responsible for different aspects of your strategy.


References are not always easy to collect, but the partner you consider should have at least a few at their disposal. Always remember to ask for them when preparing a final selection of partners.

Questions to Ask Potential Pricing Consultants

If you have never worked in this area before, you may have doubts about what really to ask through the course of your cooperation to make it the most fruitful. Before launching it, it is worth asking the following:

  1. Which project methodology do you use? (we recommend agile project management)
  2. Do you work in an end-to-end model? Can you cover consulting, strategy development, custom dynamic pricing model development, implementation, and maintenance?
  3. Have you worked as a consultant before, or do you have only practical experience in implementing dynamic pricing strategies?
  4. How do you organize the strategy development process? What are its stages?
  5. What will our communication look like?
  6. Which tech stack can you cover?
  7. Do you have experience in integrating dynamic pricing tools?
  8. Do you have expertise in advanced data analysis?
  9. Which data sources can you integrate into my dynamic pricing strategy?
  10. Can you present me with some statistics that prove that your dynamic pricing strategy is successful?

Reap the Benefits of Novel Pricing Strategies With Nexocode Experts

Consulting services can help you understand the impact of various factors on your margins and the way your customers react to different prices. With the help of the consultant, you can choose the right pricing strategy and polish it, identifying the relevant benchmarks and variables in order to improve the accuracy of your model. They will help you choose the right direction and minimize risks related to your new strategy.

If you are considering the transition to dynamic pricing, we would love to give you a hand! We can help you in the form of consulting, integrating pricing tools into your system, or even building a custom system for you. And if you are unsure whether this solution is for you, feel free to contact us. Having extensive expertise, we can provide you with valuable insights!

About the author

Krzysztof Suwada

Krzysztof Suwada

Data Science Expert

Linkedin profile

Krzysztof is a data scientist who applies machine learning and mathematical methods to solve business problems. He is particularly interested in developing end-to-end solutions for companies in various industries using deep learning and NLP techniques.
Mathematician, software developer, and trainer. Krzysztof's expertise in machine learning earned him a Google Developer Expert title. A fan of Albert's Einstein quote: "If you can't explain it simply, you don't understand it well enough."

Would you like to discuss AI opportunities in your business?

Let us know and Dorota will arrange a call with our experts.

Dorota Owczarek
Dorota Owczarek
AI Product Lead

Thanks for the message!

We'll do our best to get back to you
as soon as possible.

This article is a part of

Becoming AI Driven
92 articles

Becoming AI Driven

Artificial Intelligence solutions are becoming the next competitive edge for many companies within various industries. How do you know if your company should invest time into emerging tech? How to discover and benefit from AI opportunities? How to run AI projects?

Follow our article series to learn how to get on a path towards AI adoption. Join us as we explore the benefits and challenges that come with AI implementation and guide business leaders in creating AI-based companies.

check it out

Becoming AI Driven

Insights on practical AI applications just one click away

Sign up for our newsletter and don't miss out on the latest insights, trends and innovations from this sector.


Thanks for joining the newsletter

Check your inbox for the confirmation email & enjoy the read!

This site uses cookies for analytical purposes.

Accept Privacy Policy

In the interests of your safety and to implement the principle of lawful, reliable and transparent processing of your personal data when using our services, we developed this document called the Privacy Policy. This document regulates the processing and protection of Users’ personal data in connection with their use of the Website and has been prepared by Nexocode.

To ensure the protection of Users' personal data, Nexocode applies appropriate organizational and technical solutions to prevent privacy breaches. Nexocode implements measures to ensure security at the level which ensures compliance with applicable Polish and European laws such as:

  1. Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (published in the Official Journal of the European Union L 119, p 1); Act of 10 May 2018 on personal data protection (published in the Journal of Laws of 2018, item 1000);
  2. Act of 18 July 2002 on providing services by electronic means;
  3. Telecommunications Law of 16 July 2004.

The Website is secured by the SSL protocol, which provides secure data transmission on the Internet.

1. Definitions

  1. User – a person that uses the Website, i.e. a natural person with full legal capacity, a legal person, or an organizational unit which is not a legal person to which specific provisions grant legal capacity.
  2. Nexocode – NEXOCODE sp. z o.o. with its registered office in Kraków, ul. Wadowicka 7, 30-347 Kraków, entered into the Register of Entrepreneurs of the National Court Register kept by the District Court for Kraków-Śródmieście in Kraków, 11th Commercial Department of the National Court Register, under the KRS number: 0000686992, NIP: 6762533324.
  3. Website – website run by Nexocode, at the URL: nexocode.com whose content is available to authorized persons.
  4. Cookies – small files saved by the server on the User's computer, which the server can read when when the website is accessed from the computer.
  5. SSL protocol – a special standard for transmitting data on the Internet which unlike ordinary methods of data transmission encrypts data transmission.
  6. System log – the information that the User's computer transmits to the server which may contain various data (e.g. the user’s IP number), allowing to determine the approximate location where the connection came from.
  7. IP address – individual number which is usually assigned to every computer connected to the Internet. The IP number can be permanently associated with the computer (static) or assigned to a given connection (dynamic).
  8. GDPR – Regulation 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals regarding the processing of personal data and onthe free transmission of such data, repealing Directive 95/46 / EC (General Data Protection Regulation).
  9. Personal data – information about an identified or identifiable natural person ("data subject"). An identifiable natural person is a person who can be directly or indirectly identified, in particular on the basis of identifiers such as name, identification number, location data, online identifiers or one or more specific factors determining the physical, physiological, genetic, mental, economic, cultural or social identity of a natural person.
  10. Processing – any operations performed on personal data, such as collecting, recording, storing, developing, modifying, sharing, and deleting, especially when performed in IT systems.

2. Cookies

The Website is secured by the SSL protocol, which provides secure data transmission on the Internet. The Website, in accordance with art. 173 of the Telecommunications Act of 16 July 2004 of the Republic of Poland, uses Cookies, i.e. data, in particular text files, stored on the User's end device.
Cookies are used to:

  1. improve user experience and facilitate navigation on the site;
  2. help to identify returning Users who access the website using the device on which Cookies were saved;
  3. creating statistics which help to understand how the Users use websites, which allows to improve their structure and content;
  4. adjusting the content of the Website pages to specific User’s preferences and optimizing the websites website experience to the each User's individual needs.

Cookies usually contain the name of the website from which they originate, their storage time on the end device and a unique number. On our Website, we use the following types of Cookies:

  • "Session" – cookie files stored on the User's end device until the Uses logs out, leaves the website or turns off the web browser;
  • "Persistent" – cookie files stored on the User's end device for the time specified in the Cookie file parameters or until they are deleted by the User;
  • "Performance" – cookies used specifically for gathering data on how visitors use a website to measure the performance of a website;
  • "Strictly necessary" – essential for browsing the website and using its features, such as accessing secure areas of the site;
  • "Functional" – cookies enabling remembering the settings selected by the User and personalizing the User interface;
  • "First-party" – cookies stored by the Website;
  • "Third-party" – cookies derived from a website other than the Website;
  • "Facebook cookies" – You should read Facebook cookies policy: www.facebook.com
  • "Other Google cookies" – Refer to Google cookie policy: google.com

3. How System Logs work on the Website

User's activity on the Website, including the User’s Personal Data, is recorded in System Logs. The information collected in the Logs is processed primarily for purposes related to the provision of services, i.e. for the purposes of:

  • analytics – to improve the quality of services provided by us as part of the Website and adapt its functionalities to the needs of the Users. The legal basis for processing in this case is the legitimate interest of Nexocode consisting in analyzing Users' activities and their preferences;
  • fraud detection, identification and countering threats to stability and correct operation of the Website.

4. Cookie mechanism on the Website

Our site uses basic cookies that facilitate the use of its resources. Cookies contain useful information and are stored on the User's computer – our server can read them when connecting to this computer again. Most web browsers allow cookies to be stored on the User's end device by default. Each User can change their Cookie settings in the web browser settings menu: Google ChromeOpen the menu (click the three-dot icon in the upper right corner), Settings > Advanced. In the "Privacy and security" section, click the Content Settings button. In the "Cookies and site date" section you can change the following Cookie settings:

  • Deleting cookies,
  • Blocking cookies by default,
  • Default permission for cookies,
  • Saving Cookies and website data by default and clearing them when the browser is closed,
  • Specifying exceptions for Cookies for specific websites or domains

Internet Explorer 6.0 and 7.0
From the browser menu (upper right corner): Tools > Internet Options > Privacy, click the Sites button. Use the slider to set the desired level, confirm the change with the OK button.

Mozilla Firefox
browser menu: Tools > Options > Privacy and security. Activate the “Custom” field. From there, you can check a relevant field to decide whether or not to accept cookies.

Open the browser’s settings menu: Go to the Advanced section > Site Settings > Cookies and site data. From there, adjust the setting: Allow sites to save and read cookie data

In the Safari drop-down menu, select Preferences and click the Security icon.From there, select the desired security level in the "Accept cookies" area.

Disabling Cookies in your browser does not deprive you of access to the resources of the Website. Web browsers, by default, allow storing Cookies on the User's end device. Website Users can freely adjust cookie settings. The web browser allows you to delete cookies. It is also possible to automatically block cookies. Detailed information on this subject is provided in the help or documentation of the specific web browser used by the User. The User can decide not to receive Cookies by changing browser settings. However, disabling Cookies necessary for authentication, security or remembering User preferences may impact user experience, or even make the Website unusable.

5. Additional information

External links may be placed on the Website enabling Users to directly reach other website. Also, while using the Website, cookies may also be placed on the User’s device from other entities, in particular from third parties such as Google, in order to enable the use the functionalities of the Website integrated with these third parties. Each of such providers sets out the rules for the use of cookies in their privacy policy, so for security reasons we recommend that you read the privacy policy document before using these pages. We reserve the right to change this privacy policy at any time by publishing an updated version on our Website. After making the change, the privacy policy will be published on the page with a new date. For more information on the conditions of providing services, in particular the rules of using the Website, contracting, as well as the conditions of accessing content and using the Website, please refer to the the Website’s Terms and Conditions.

Nexocode Team


Want to unlock the full potential of Artificial Intelligence technology?

Download our ebook and learn how to drive AI adoption in your business.