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Dynamic Pricing

What product price is the right one for each customer segment? Can anything be done with prices visible to everyone (like one-shop)? What about retail segments using individual discounts, what type of discount is the right one?

Price sensitivity of e-commerce customers puts a lot of pressure on businesses. To remain competitive in the e-commerce environment, you have to be able to immediately react to market conditions, adjusting prices accordingly. Dynamic Pricing helps you to manage this complex task.




Deloitte Dynamic Pricing (DDP) is the solution aiming to automate the daily pricing routine for e-shop operations and other retailers. It is designed to handle a large volume of items (tens of thousands). The prices recommended by DDP are optimized by a mathematical algorithm. It maximizes total gross margin, total gross margin minus distribution cost, total turnover, or any combination of the three quantities. Business constraints such as minimum price, minimum margin, maximum price or fixed price are respected and preserved. From an IT perspective, DDP consists of a database, engine and user interface. It can be used as a service, or implemented on premises.

With the discounting use-case, it is necessary to use the customer-related data, the results of the micro-segmentation and the price sensitivity of those segments.

By deploying dynamic pricing, we helped increase the annual sales of a major aviation industry company by EUR 4.5 million.

The Dynamic Pricing consists of the following five components: