Smarter Pricing: How to capture more value in your market

How could we set the price?

There is a spectrum of price-setting mechanisms from auction to price list which includes

• auction, reverse auction

• bi-lateral bargaining

• dynamic pricing

• fixed price list.

The auction is a mechanism where prospective customers bid for products until one outbids the others. The Dutch auction, or reverse auction, is another form. Here a lot is offered at a high price, which then drops by steps until a buyer bids successfully. The first bidder secures the lot in this model. Bi-lateral bargaining or haggling is another price-setting model. These first-degree discrimination approaches are individual, time-consuming and effort intensive.

With Internet-enabled dynamic pricing, buyers or groups of buyers make binding bids which ...