Pricing strategies

What is a pricing strategy?

A pricing strategy is a blueprint for determining the ideal cost of a product or service. It's a guide to setting prices that balance profitability and customer demand while staying in sync with market conditions.

Aionic offers two different pricing strategies that can be used for your services. Pricing strategies can be used interchangeably on your services depending on the desired outcome.

Static Pricing

Static pricing is a fixed dollar amount for a service with no variation due to the day/time of the booking.

Example  Static Pricing Strategy
A fitness studio offers a boxing group session twice a week on Mondays and Wednesdays at 7am, it is held at a consistent time and is almost always full. Therefore, it makes sense that it would be offered for a fixed price.
Service	Group Session
Pricing Strategy	Static
Price for Service	$50

Dynamic Pricing

Dynamic pricing is a strategy that allows you to set parameters on pricing based on your demand. For a dynamic pricing strategy to work effectively, there needs to be enough data for the algorithm to analyse customer behaviours, patterns and reference points, and you need to set a minimum and maximum threshold to be applied to your standard price. 

Read more about how dynamic pricing works here.

Example Dynamic Pricing Strategy A fitness studio offers 1-1 sessions at all different times throughout the week. The most popular time slots are before and after work, and lunchtime. This means that there are gaps in some time slots as they are less in demand. Applying a dynamic pricing strategy to this service will help to drive more people to consider booking a less popular time for a discount on the service and charge extra for more popular time slots. The dynamic pricing strategy has been set as: Deviation from Standard Price Minimum: 15% Maximum: 20%
Service	1-1 Session
Pricing Strategy	Dynamic
Price for Service (Standard)	$100
Calculated price for low demand sessions	$85
Calculated price for high demand sessions	$120