Fast Company interviewed Carly Fink, President of Provoke Insights, to discuss the impact of digital price tags and dynamic pricing at big-box retailers.  Provoke Insights recently researched the topic of dynamic pricing as this new retail structure becomes more prominent. While some restaurants are ready to transition to this model, national retailers like Walmart deny plans for dynamic pricing, emphasizing adjustments only for specific promotions. Consumers remain wary, fearing rapid price changes akin to surge pricing in other industries, despite the potential benefits of lower prices during off-peak times.

Some noteworthy insights include:  

• Walmart is expanding digital shelf labels, enabling remote price changes for over 100,000 items via mobile app, freeing up staff, and enhancing inventory management.
• Despite assurances that the technology won’t enable dynamic pricing, concerns remain about its potential for fluctuating prices similar to surge pricing in other industries.
• The consumer worries are valid since 63% of people are more budget-conscious than six months ago.
• Proponents argue dynamic pricing could benefit consumers during off-peak periods but stress the need for transparency to manage consumer expectations.
• Dynamic pricing in retail remains contentious despite potential benefits during off-peak times.

Provoke Insights explores customer perceptions and strategizes for effective ways to implement dynamic pricing in restaurants.

Modern Restaurant Management presents the research findings of an April 2024 trends report by Provoke Insights. The article delves into the concept of dynamic pricing in the restaurant industry, discussing its potential benefits and pitfalls. It highlights the importance of implementing dynamic pricing strategies effectively to boost revenue without alienating customers. Initially met with skepticism, dynamic pricing gains favor when framed as discounts through membership programs for off-peak hours, with over half of consumers expressing keen interest in such initiatives.

Some noteworthy insights include:  

• Dynamic pricing refers to the practice of adjusting menu prices based on various factors such as demand, time of day, or level of patronage.
• Awareness of dynamic pricing is low among Americans, with urban dwellers and parents more likely to be familiar with the concept.
• Two-thirds of consumers are initially averse to dining at restaurants using dynamic pricing, however, interest in dynamic pricing increases significantly when presented as discounts offered through off-peak hour memberships
• Restaurants should emphasize the benefits and discounts of dynamic pricing rather than focusing on peak-hour price increases to improve consumer perception and engagement.