I’ve wondered for a long time why theaters keep raising prices for their tickets even though so many seats are left empty. Finally Atom Tickets will ensure that theater seats are filled more often and priced more reasonably.
Hopefully these algorithms will quote low prices to flexible people just like leisure travelers can buy cheap airline tickets.
In our work with Shopify stores, we find that there is a lot of room for revenue growth by pricing using smart algorithms. Even a simple A/B test can raise profit by well over 25%.
Profitability can be further improved by selectively offering discounts only under the conditions where the discount changes buyer behavior.
Companies currently using dynamic pricing include:
- Qcue which improves pricing for sports tickets by making seats available to fans for much cheaper during many games.
- Liftopia which dangles discounts in front of on-line shoppers that shop in advance.
This article explains various interesting aspects and applications of dynamic pricing.