What:  A piece from the FT on how dynamic pricing is going to be used in more retail verticals in the future.

Why it is important: Retailers need to be technically fit to apply dynamic pricing, but also able to communicate what they do in an acceptable manner to their customers.

Stonegate, the largest pub company in the UK, has introduced a "dynamic pricing" policy a, raising beer prices by 20p on busy evenings and weekends. This move has been met with dissatisfaction by some regular patrons. Dynamic or "surge" pricing, where prices change based on supply and demand, is common in industries like air travel and has been powered in recent years by AI and algorithms. As technology advances and inflation affects profits, more industries are considering its implementation. Critics argue that this pricing strategy can be exploitative and unethical. In some cases, such as after the London Bridge terror attack in 2017, Uber faced backlash and had to refund users due to surge pricing. Another example is the frustration from fans over fluctuating concert ticket prices on platforms like Ticketmaster. Although some businesses defend the strategy for boosting revenues and offsetting costs, others believe it could lead to a loss of trust among consumers if implemented widely in different sectors.

Are you ready for dynamic pricing?