{"id":2972,"date":"2024-02-27T11:17:12","date_gmt":"2024-02-27T19:17:12","guid":{"rendered":"https:\/\/www.artsjournal.com\/worth\/?p=2972"},"modified":"2024-02-27T11:17:15","modified_gmt":"2024-02-27T19:17:15","slug":"today-in-dynamic-pricing","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/worth\/2024\/02\/today-in-dynamic-pricing\/","title":{"rendered":"Today in dynamic pricing"},"content":{"rendered":"\n
\"\"<\/a><\/figure>\n\n\n\n

I have a chapter on dynamic pricing in my old book<\/a>. In a nutshell: dynamic pricing is where the seller adjusts the current price upwards or downwards based upon the most recent information on market conditions. This is not the same as a cinema having discount Tuesdays, since it will offer that each week as a result of known<\/em> factors about the demand for tickets. Dynamic pricing is where you make changes on the go, where the price change might be up or down, depending.<\/p>\n\n\n\n

I suggested in the book that while airlines and hotels are pretty good at this, for arts organizations it will be less successful, because a falling price might suggest that ticket demand is low because of unfavorable word-of-mouth and reviews. If Southwest cuts the fare for this Saturday’s flight to Baltimore, it is not telling me that there is new information about Baltimore that is reducing the demand for flights; I will treat it as random. Even if a sports team cuts the price for the last games of the season, having had many disappointments and been mathematically eliminated from the playoffs, the cut in price is not conveying news <\/em>to potential buyers, who are already aware of the team’s struggles. But cutting the price for the second week of Springfield Community Theatre’s production of Cat on a Hot Tin Roof might be something of a warning.<\/p>\n\n\n\n

Today I learn from the most valuable blog Lawyers Guns Money <\/a> that Wendy’s is looking to adopt dynamic pricing<\/a>:<\/p>\n\n\n\n

\n

Wendy\u2019s is looking to test having the prices of its menu items fluctuate throughout the day based on demand, implementing a strategy that has already taken hold with ride-sharing companies<\/a> and ticket sellers<\/a>.<\/p>\n\n\n\n

During a conference call earlier this month, Wendy\u2019s CEO Kirk Tanner said that the Dublin, Ohio-based burger chain will start testing\u00a0dynamic pricing<\/a>, also known as surge pricing, as early as next year.<\/p>\n<\/blockquote>\n\n\n\n

Well, I don’t know about you, but if I see a fifty percent drop in the price of a Baconator from the day before, I might just suspect that my local is sitting on an awful lot of bacon they really need to move, right now. And so, in multiple senses, I’m not buying it.<\/p>\n","protected":false},"excerpt":{"rendered":"

I have a chapter on dynamic pricing in my old book. In a nutshell: dynamic pricing is where the seller adjusts the current price upwards or downwards based upon the most recent information on market conditions. This is not the same as a cinema having discount Tuesdays, since it will offer that each week as […]<\/p>\n","protected":false},"author":3,"featured_media":2973,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26],"tags":[],"class_list":{"0":"post-2972","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-issues","8":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2024\/02\/image-1.png","jetpack_shortlink":"https:\/\/wp.me\/p3dIW5-LW","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1660,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/10\/what-is-dynamic-pricing-a-clarification\/","url_meta":{"origin":2972,"position":0},"title":"What is dynamic pricing? A clarification (updated)","author":"Michael Rushton","date":"October 27, 2014","format":false,"excerpt":"'Dynamic pricing on websites: illegal or unfair?', asks\u00a0\u00c9lo\u00efse Gratton on her blog. But the post confuses various pricing strategies, not all of which are 'dynamic pricing'. Dynamic pricing, also known as \u201cadaptive pricing\u201d, \u201cdynamic pricing\u201d or \u201cdiscriminatory pricing\u201d \u00a0or\u00a0first-degree price discrimination, is defined as a practice where organizations attempt to\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"first-degree","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":1976,"url":"https:\/\/www.artsjournal.com\/worth\/2016\/02\/dynamic-pricing-and-price-discrimination-are-not-the-same-thing\/","url_meta":{"origin":2972,"position":1},"title":"Dynamic pricing and price discrimination are not the same thing","author":"Michael Rushton","date":"February 6, 2016","format":false,"excerpt":"But a recent article in The Economist (!) confuses the matter. Dynamic pricing occurs when sellers adjust prices on a frequent basis to account for varying shifts in demand, or limitations in supply. Uber raises fares when demand spikes upward and drivers are scarce; sports teams cut prices for tickets\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"let's get this straight","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/02\/apples-and-oranges.jpeg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1365,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/06\/dynamic-pricing-at-the-zoo\/","url_meta":{"origin":2972,"position":2},"title":"Dynamic pricing at the zoo","author":"Michael Rushton","date":"June 20, 2014","format":false,"excerpt":"The Indianapolis Zoo has adopted dynamic pricing. The policy is combined with increased differentiation in prices between low-demand weekdays and high-demand weekends, and a general increase in prices arising from the increased demand that will flow from the new orangutang exhibit. The Indiana Business Journal reports: The zoo expects the\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"come see me on a cloudy Tuesday","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/06\/Orangutang.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/06\/Orangutang.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/06\/Orangutang.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":1106,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/03\/when-dynamic-pricing-makes-sense\/","url_meta":{"origin":2972,"position":3},"title":"When dynamic pricing makes sense","author":"Michael Rushton","date":"March 11, 2014","format":false,"excerpt":"\"Let's move before the raise the parking rate.\" Palmerston North, New Zealand, has the latest in dynamic pricing for parking. From Offsetting Behavior (via Marginal Revolution): The 33-space carpark in the city\u2019s Church Street has been kitted out with solar-powered sensors by local parking technology firm Frogparking that can tell\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"use this fern for $2 an hour","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/03\/kiwi.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1621,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/10\/whats-new-in-dynamic-pricing\/","url_meta":{"origin":2972,"position":4},"title":"What’s new in dynamic pricing?","author":"Michael Rushton","date":"October 16, 2014","format":false,"excerpt":"There's a good, well-informed post by Tim Baker on 'The State of Dynamic Pricing'. So, what do we know so far? First, on the term. Dynamic Pricing is not about offering different prices to different market segments, nor is it about scaling the house or other quality differentials, nor about\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"they will taste just fine!","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/bananas.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/bananas.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/bananas.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/bananas.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/bananas.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/bananas.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":387,"url":"https:\/\/www.artsjournal.com\/worth\/2013\/02\/why-is-dynamic-pricing-so-rarely-used\/","url_meta":{"origin":2972,"position":5},"title":"Why Is Dynamic Pricing So Rarely Used?","author":"Michael Rushton","date":"February 28, 2013","format":false,"excerpt":"As technology has come available that allows performing arts organizations to adjust prices in light of demand, the question has arisen: is it appropriate for nonprofit theaters to employ dynamic pricing? See here and here for example. Let's consider the issue from a different angle: why is dynamic pricing so\u2026","rel":"","context":"In \"dynamic pricing\"","block_context":{"text":"dynamic pricing","link":"https:\/\/www.artsjournal.com\/worth\/tag\/dynamic-pricing\/"},"img":{"alt_text":"one price","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/02\/220px-Vitascope_Theater_Buffalo_Nov_1897_ad-177x300.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/2972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/comments?post=2972"}],"version-history":[{"count":1,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/2972\/revisions"}],"predecessor-version":[{"id":2974,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/2972\/revisions\/2974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media\/2973"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media?parent=2972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/categories?post=2972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/tags?post=2972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}