Many businesses already use seasonal pricing in response to easily-observable changes in demand. But as writer Mark Henricks notes at American Express OPEN Forum, “careful examination of sales history may reveal less seasonal impact than a business owner thinks.” Chris Pohl, Digonex VP of Client Services, was interviewed for his article, titled “Seasonal Pricing: A Clever Strategy That May Help Drive Sales“:
Along with (or instead of) using discounts to spur off-season demand, businesses may want to consider applying premium pricing schedules during peak demand, says Chris Pohl, vice president of client services for Digonex Technologies, an Indianapolis provider of dynamic-pricing services. “The money that can be made during the peak season can compensate for the low demand and sales during the slow season,” Pohl says.
Seasonal pricing is, for many organizations, a step in the right direction towards pricing optimization. Dynamic pricing is the logical next step in the evolution of pricing strategy, and isn’t only for businesses with seasonal variations:
And when it comes to demand-based pricing, seasons aren’t the only category to consider, he adds. One-time or irregularly recurring events such as concerts, tournaments and conventions can also call for price modifications.
“That’s the case with any product,” Pohl says. “Finding the optimal price at any time so people feel like they got a value.”