While you might associated dynamic pricing — a method that changes the price of an item depending on how much demand there is for it — with airlines, ride-hailing apps, and amusement parks, there’s nothing keeping other industries from giving it a go. Like a California bar that changes the price of tequila shots depending on how popular brands are at the moment.
A bar called The Blind Burro in San Diego has tequila prices that change from one minute to the next, reports the Associated Press. The bar uses software by a company called The Drink Exchange that keeps track of what drinkers are buying and displays the changing prices of more than two dozen tequila brands on TV screens on the walls.
For example, one night a shot of Espolon Blanco went for $7.75, before dipping to $7.25 a few minutes later.
It makes sense, experts say, though it might seem odd for customers used to fixed prices, and we’ll likely see other industries adapt the model to their needs in the future.
“In the old days, dynamic pricing was thought of as a pricing technique used in fixed capacity industries such as airlines,” Rafi Mohammed, a pricing strategist told the AP. “But the new thinking is dynamic pricing can be used in any industry where demand or supply fluctuates.”
How much for that tequila shot? The price is always changing [Associated Press]
by Mary Beth Quirk via Consumerist
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