Dynamic Pricing

Dynamic pricing is a method of pricing where the price of a product or service is not fixed but dependent upon certain variables. Businesses that provide customized products or personalized services often rely on dynamic pricing to charge customers based on the customizations or personalization they prefer in their products.

For instance, in printing where a t-shirt printing business is offering configurable products with multiple customization options in various design areas, the price of the product is determined based on the customizations and design areas that are configured by the customers.


With this type of pricing customers pay for the customizations and are usually charged a premium compared to other flat-priced products. The challenge here in dynamic pricing is when the pricing variables are not clear to the customer, the personalized products often go above their budget and that might result in a higher cart abandonment ratio. It is because these platforms are not integrating real-time pricing methods to keep the customers informed.

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