Donna Genie explains the concept of dynamic pricing using Wendy's as a current example (raising prices during busy periods and lowering them during slow periods). She suggests how retailers could apply demand-based pricing to smooth staffing needs and improve customer experience by aligning prices with traffic patterns.
Have you heard about how Wendy's is looking to increase prices in their busy time of the day and decrease prices in their slower times of the day? Yes, we know that's called dynamic pricing. What do you think about Wendy's having different prices depending on the different times of the day? And how would that apply to your business if you were to do that? So Wendy's is trying it. There have been many other businesses that try this at different points. Airlines have been doing it for years and so hotels. So why not you? Let's use a really easy example. Let's say it's a retailer now, obviously retail. We know the weekends are usually busier Mondays, Tuesdays than might be closed or because it's slower. But what if your pricing was dynamic and dealt with the supply and demand of people? What would that help you achieve? Well, first it might help out with staffing. You would know now that you could staff differently based on the ebb and flow of the people and even it out. Maybe your weekends aren't quite as crazy, but you have the same revenue. Wouldn't that be okay? Maybe your staff could take more time to treat your guests better and have better customer guest experience and service levels. That would be great.
