Dynamic pricing

You can adjust Clock pre-sale prices throughout the day based on market developments to optimize your sales strategy. However, you can now have this done automatically via the Dynamic pricing feature, based on predefined parameters. This allows you to determine the base price for the Clock pre-sale yourself, as well as the extent to which the price may rise or fall.

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Dynamic pricing is a pricing strategy in which the price of a product or service changes based on demand, supply, time, availability, etc. With dynamic pricing, the price changes automatically based on market forces. An example of this is the regular adjustment of flight ticket prices.

Many growers adjust pre-auction prices throughout the day based on sales speed, auction revenue, etc. This requires thoroughly analyzing market and sales data and aligning pre-auction prices accordingly. With sales data for specific product groups, this can now be done automatically via Floriday.

How does setting dynamic pricing work in Floriday?

Go to Supply > Clock and click on the Clock Pre-sales tab. Click on the Dynamic prices button at the top right.

A pop-up now appears allowing you to configure the settings for dynamic pricing.
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Do you have items in different product groups? Then you can configure these separately. For each product group, you specify the allowed price deviation downwards and upwards relative to the manually set clock pre-sale price. You set this margin in percentages.

Is your set clock pre-sale price your absolute bottom price? Then you can set the minimum price to 0%. However, we advise you to set your clock pre-sale price somewhat higher, so that you can potentially lower it to your minimum price. Even then, you will see which clock pre-sale price best reflects the market value.

Set everything up? Then click the Save button. You can also adjust these settings later.

After setting the dynamic price settings, enter the desired clock pre-sale prices. You can also do this by adopting the price suggestions for the clock pre-sale (configurable via Settings > Preferences), or the preset clock pre-sale prices (via the Settings at the top under the three dots). This sets a base price for the clock pre-sale.

Have you entered all the prices? Then click Save at the bottom.

From now on, market prices for this product group and your own sales, your purchasing power percentage, are monitored every hour. Based on this, the price may remain the same, increase, or decrease. A price can only be adjusted upwards if purchases have actually been made on this trade item during the Clock pre-sale.
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If the price has increased, you will see a notification with a + and a number next to your item; for a downward price adjustment, you will see a - with a number. The number can be a maximum of 5, because the price adjustment can go up or down in 5 steps; 5 price points.

If you have an item priced at, for example, €0.50 and you choose a dynamic upward price increase of 20%, the price could reach a maximum of €0.60. Each price step would then be an increase of €0.02. Are market prices favorable? Then your price will be set to €0.52 after an hour and possibly to €0.54 an hour later, depending on market conditions.

Example of when purchasing power increases:

Base price: €0.50

Step 1 up: €0.50 > €0.52

Step 2 up: €0.52 > €0.54

Step 3 up: €0.54 > €0.56

Step 4 up: €0.56 > €0.58

Step 5 up: €0.58 > €0.60 (maximum price)

Is your selling price in line with market value? Then your price remains the same. Is your price too high? Then it will be adjusted downwards. Here too, the difference between your entered base price and your minimum price is taken into account. If you have a dynamic price of 10% downwards for a product of €0.50, you can go down to a maximum of €0.45. Here too, the steps increase in increments of 5. However, in this case, a step down is €0.01.

Example when your purchasing power decreases:

Base price: €0.50

Step 1 down: €0.50 > €0.49

Step 2 up: €0.49 > €0.48

Step 3 up: €0.48 > €0.47

Step 4 up: €0.47 > €0.46

Step 5 up: €0.46 > €0.45 (minimum price)

The data is checked again every hour, and your price can be adjusted based on market progress.

Your price is adjusted based on your purchasing power percentage. This purchasing power percentage is calculated by looking at how the market is moving relative to your own purchasing power. It considers the number of items sold in the past hour (total purchasing power) and your own purchasing power (how many items you sold during the pre-auction sale). Is your purchasing power positive? Then the price of the items that have already been sold will increase. For a price increase, your purchasing power percentage must be higher than the total purchasing power, and a sufficient total must have been sold.

By clicking on the icon with the + and the number, you can see when and why the price went up or down.

Is your purchasing power negative? Then, when your purchasing power reaches a certain threshold relative to total purchasing power, your pre-auction sale price will be reduced.

Do you want to make an exception for a specific item and prevent it from fluctuating with the set dynamic prices? Then configure this via the three dots at the end of the item.

You can then set a manual or dynamic price separately for this item. This can be useful if you offer a unique product category, meaning you want to keep the price higher or at a specific level.

Choose the Manual option if you want to use a fixed price. You will then use the entered base price. Naturally, you can still adjust this fixed price yourself during the day.

Choose the Dynamic option if you want to use automatic dynamic pricing but want this item to fluctuate between prices other than the standard set range. Here you enter a minimum and maximum price. This allows you to set a specific item so that it cannot decrease, for example, but can rise faster or to a higher amount if there is sufficient demand.

Do you want to work with Dynamic pricing? Then contact our support department at +31 174-352070 to activate this feature for you.

Do you work in a software package? Even then, you can use Dynamic pricing! You can enter your supply into your software package and configure the settings for Dynamic pricing in Floriday.

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