Central, fast, flexible

In which sectors dynamic pricing creates real added value

Dynamic pricing stands for flexible and automated pricing in real time. Electronic price tags form the technological basis for this and enable precise price control - tailored to product ranges, customer demand and industry-specific requirements.

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1 What is dynamic pricing?

Dynamic pricing refers to the flexible adjustment of prices in real time to current market conditions. What has long been common practice in online retail - fluctuating prices depending on demand, time of day or competitive supply - is now also finding its way into bricks-and-mortar retail. A 2023 study shows that 19% of retailers are already using dynamic pricing in bricks-and-mortar stores and a further 35% are planning to do so (source : absatzwirtschaft.de). The aim of this strategy is to optimize sales and profits by constantly adjusting prices to customers' willingness to pay and the market situation. Thanks to modern technology (keyword big data), fully automated price control is now easier than ever - algorithms evaluate huge amounts of data in real time to determine the optimum price at all times.

In a nutshell: dynamic pricing makes it possible to always offer the best possible price for every product - for higher margins, faster sales and even better customer loyalty.

2. the technological basis of dynamic pricing

Digital price labeling systems are essential for implementing dynamic pricing in brick-and-mortar retail. Electronic shelf labels are the technological prerequisite for updating prices across all stores in seconds - a task that would be almost impossible to achieve manually with hundreds or thousands of items.

The digitalization of price information saves time and personnel costs, as price changes are controlled centrally and automatically transferred to all shelf labels. At the same time, the error rate is reduced as shelf labels are always synchronized with the POS system. This enables retailers to react quickly and precisely to market changes - a decisive advantage in a dynamic competitive environment.

3. electronic shelf labels: the backbone of dynamic pricing strategies

Electronic shelf labels are the technical basis for dynamic pricing in stationary retail. Without them, centralized, automated price control in real time is almost impossible to implement - primarily due to the following factors:

Radio technology

Reliable, wireless transmission
for fast price updates.

Synchronization

Connection to merchandise management and POS system
for consistent price data.

System architecture

Scalable infrastructure for the simultaneous
updating of thousands of labels.

Data security

Stable communication with central
systems to prevent errors.

4. industry-specific advantages of dynamic pricing

Dynamic pricing gives companies the opportunity to control prices in a targeted manner and in real time - automatically, across all locations and based on current framework conditions. By using digital price tags, price changes can be implemented efficiently and processes can be significantly streamlined. Whether in retail, pharmacies or production, dynamic pricing offers a wide range of benefits - from improved planning and reduced errors to faster response times. The following examples show how this potential can be used in different sectors.

Food retail:

In food retail, dynamic pricing enables flexible pricing, especially for perishable goods and daily fluctuations:

  • Adjust prices in real time: Thanks to automated ESL updates, supermarkets can change prices store-wide in seconds. All shelf prices are always up-to-date, without any manual effort on site - this reduces errors and keeps employees free from routine tasks.
  • Less spoilage through demand-driven pricing: Dynamic pricing helps to reduce write-offs. For example, discounts on fresh produce can be automatically activated shortly before a best-before date expires to increase sales. This reduces product waste because fewer products spoil without being sold.
  • Central promotion control: Whether a daily offer or weekend discount - with dynamic price control, promo prices can be planned centrally and played out in all stores at exactly the right time. This allows companies to run simultaneous promotions across their entire store network, increasing the impact of the campaign.
  • Always correct labeling: Digital shelf labels are networked with the checkout system. Customers therefore always pay the price shown on the shelf - there are no discrepancies between the scanner checkout and the price tag. This avoids price irritations and strengthens customer confidence in the retailer's price transparency.

Dynamic pricing creates tangible benefits for food retailers - from the reduction of perishable goods to more efficient processes and flexible promotion control. These potentials can be realized reliably and automatically through the use of digital price tags.

If you would also like to modernize your pricing processes and make your store more efficient, we would be happy to advise you personally on suitable ESL solutions and their integration into your existing system landscape.

Electrical retail:

In electronics retail, dynamic pricing forms the basis for keeping stationary prices competitive and synchronized with the online store at all times:

  • Fast response to competitor offers: With dynamic pricing, electronics retailers can adjust their store prices immediately as soon as competitors (online or offline) change their prices. With ESL, such market reactions can be implemented in minutes, without time-consuming relabeling - so the offers always remain competitive.
  • Uniform omnichannel prices: Central price control ensures that store prices and online store prices match. As a result, customers experience the same price on all channels and conflicts are avoided (e.g. customers demanding the lower online price in-store). A large electronics retailer, for example, displays identical prices online and in-store and can thus strengthen customer confidence that they are always receiving an up-to-date, fair offer.
  • Efficient promotions: discount campaigns - such as the sale of discontinued models or short-term flash sales - can be started and ended across the board at the touch of a button. Dynamic pricing makes the implementation of such promotions very agile: what used to take days to complete manually now happens automatically within a few moments.
  • Cost and error reduction: Every automatic price change saves on personnel costs and minimizes the risk of incorrect awards. Employees no longer have to swap paper labels en masse and can instead concentrate on advising customers or closing sales. At the same time, the error rate is reduced because digital price tags always display the correct current price.

For electronics retailers, dynamic pricing is a key lever for remaining competitive in brick-and-mortar stores and harmonizing pricing strategies across channels. Digital price tags create the necessary technical basis to control prices quickly, consistently and error-free - even with frequently changing product ranges or promotions.

If you would like to modernize your pricing processes in specialist retail and make them more efficient, we will be happy to support you in implementing a suitable ESL solution.

Garden centers and DIY stores

In DIY stores and garden centers, dynamic pricing helps to efficiently manage the wide range of products and flexibly adjust prices depending on the season, for example:

  • Reduced staff workload: Automated price updates via ESL eliminate the need for tedious manual label changes on thousands of products. Staff are relieved of routine tasks and gain more time for advice and customer service. At the same time, errors in price changes are drastically reduced.
  • Planned seasonal prices: Promotions for seasonal goods (e.g. garden accessories in spring) or regional sales can be defined in advance and automatically activated in all stores on the key date using Dynamic Pricing. Price adjustments outside of opening hours are also possible so that, for example, all prices for the winter sales can be changed overnight without disrupting operations.
  • Flexible price control according to external factors: Dynamic pricing allows prices to be quickly adjusted to the weather or stock levels in order to take advantage of sales opportunities. For example, heating appliances can be offered at a slightly higher price in the event of a sudden cold snap, while surplus garden products can be discounted if there is excess stock - all automatically controlled according to predefined rules.
  • Consistent store prices: Networked ESL systems ensure that every store receives the same price changes at the same time. The pricing strategy remains consistent across the entire store network - regional price differences are avoided unless desired, and the price image of the brand remains consistent.

In DIY stores and garden centers, dynamic pricing in combination with ESL technology ensures greater efficiency, better planning and a high degree of flexibility - be it for seasonal offers, weather-related price adjustments or the reduction of manual processes. Automated price control relieves the burden on staff, reduces sources of error and enables a consistent pricing strategy across all locations.

If you would like to modernize your pricing processes and standardize them across all locations, we will be happy to assist you with the introduction of a suitable ESL solution.

Drugstores and pharmacies:

Drugstores and pharmacies benefit from Dynamic Pricing thanks to fast price updates and always correct labeling - despite thousands of items and frequently changing offers:

  • Elimination of manual labeling: digital price tags replace time-consuming paper labels. With Dynamic Pricing, prices on thousands of products are updated automatically so that employees no longer have to change every price manually. The time saved benefits customer advice, which is a major advantage in advice-intensive sectors such as pharmacies.
  • Central price control: Price changes can be planned centrally and carried out simultaneously in all stores at a defined time. Even price promotions outside opening hours (such as night-time adjustments at the turn of the month or simultaneous store promotions at the weekend) are easily possible with dynamic pricing - the system implements specifications automatically.
  • Fast price adjustment to the online store: Thanks to Dynamic Pricing, pharmacies with online delivery can adjust their store prices to their own online store or to competitor prices at any time. This allows you to remain competitive if, for example, a competitor store offers popular cosmetic products at a lower price at short notice. Digital price labeling ensures that such adjustments are visible in the pharmacy within seconds.
  • Correct prices and compliance at all times: Electronic price tags ensure that all prices are up-to-date and synchronized with the cash register, even with tens of thousands of items. Price errors - such as incorrect prices for promotional goods or OTC medicines - are avoided. This is not only important for the customer experience, but also for compliance with legal requirements (e.g. correct drug prices).

For drugstores and pharmacies, Dynamic Pricing combined with ESL technology offers a practical solution for managing thousands of prices automatically, quickly and in compliance with the law. The systems significantly reduce manual effort, enable central price control across all locations and at the same time increase price transparency for customers - a clear advantage in a highly competitive and regulated market environment.

We would be happy to support you in planning and implementing your digital pricing strategy - reliably, efficiently and individually tailored to your sector.

Fashion trade:

In confusing product groups such as screws, plugs or small parts, digital pricing helps to find the right products more quickly.

In fashion retail, dynamic pricing makes it possible to react to trends and seasons at lightning speed without having to carry out time-consuming manual price rounds:

  • Lightning-fast discount campaigns: Seasonal sales or spontaneous flash sales can be implemented in real time across the entire store network with Dynamic Pricing. For example, a fashion retailer can immediately offer discounts on summer clothing in all stores on a hot weekend to push sales - without any lead time. This allows you to react just-in-time to trends or stock surpluses and make the most of sales potential.
  • Efficiency and cost reduction: Central price updates at the click of a mouse save considerable staff time and printing costs. The tedious relabeling of hundreds of items when prices are reduced is no longer necessary. Instead, prices change automatically within seconds, e.g. for a Black Friday discount campaign. This reduces the operational costs of price changes to almost zero, allowing store employees to concentrate on customers and product presentation.
  • Cross-channel price consistency: prices in the store and online store always remain synchronized thanks to a central dynamic pricing logic. This creates a consistent shopping experience - customers do not have to worry about paying more in-store than online, as both channels show the same current price. It also avoids errors at the checkout that could be caused by outdated price labels.
  • More product information on the shelf: Modern digital price tags can also display sizes, availability or customer ratings in addition to the price. This provides customers with additional decision-making aids directly at the clothes rack - such as how an item was rated in the online store - without first having to pull out their smartphone. This omnichannel information on the ESL display links the online and store experience and increases satisfaction as shoppers can make more informed decisions.

In fashion retail, dynamic pricing creates the necessary flexibility to react to trends, seasonalities and sales in real time - across channels, efficiently and customer-oriented. Digital price tags make it possible to control price promotions centrally, streamline processes and improve the shopping experience at the same time. This makes price labeling an integral part of modern, agile sales strategies.

Would you like to find out more about how dynamic pricing can be implemented in your store network? We would be happy to advise you personally - just get in touch.

Production:

In logistics and production, electronic signage improves the transparency and speed of processes by controlling information as flexibly as prices in retail:

  • Optimized processes: Digital labels simplify the labeling of storage locations, shelves and production areas. Stock information or product data can be managed centrally and automatically transferred to the displays. This increases information transparency along the process chain and significantly reduces the effort required for manual updates.
  • Real-time data updating: stocks, order status or production steps are updated on all displays in a matter of seconds using the dynamic data system. Employees can see the latest information at all times, which minimizes errors in the process chain and supports a seamless workflow. Especially in just-in-time production processes, up-to-date, accurate information is crucial for efficient work.
  • Lower costs and less paper: As location or order data is transmitted digitally, there is no need to constantly reprint paper labels. This saves material costs and time in the warehouse and production. Changes (e.g. new storage locations, changed article information) are sent centrally to all relevant E-Ink displays at the click of a mouse instead of sending employees around the hall.
  • Robust display: Industrial-grade ESLs often have impact-resistant housings or special protective frames, making them suitable for harsh environments. All important data - from product information and barcodes to dynamic prices within a factory outlet - remains legible at all times. Even in dusty or hectic warehouse areas, the e-ink displays are protected against damage and barcodes can always be scanned.

In logistics and production, digital signage systems make a valuable contribution to process optimization. They increase transparency, speed up processes and reduce administrative work. Information can be kept up to date across all locations - without any paper or manual intervention. ESL solutions therefore create the conditions for greater efficiency and reliability in dynamic operating environments.

Would you like to find out how you can integrate digital displays into your logistics or production processes? Talk to us - we will be happy to support you.

Healthcare:

In the healthcare sector - from hospitals to care facilities - digital signage supports the efficient management of information and prices:

  • Up-to-date information at the touch of a button: whether treatment rooms, operating theatres or ward rooms - with electronic door and room signs, designations and information can be adapted centrally in a matter of seconds. For example, rooms can be renamed at the click of a mouse or current occupancy plans and information texts can be imported. This increases flexibility, for example when wards need to be reorganized or new information (e.g. isolation status, visiting times) needs to be displayed at short notice.
  • Improved processes and orientation: important information - from room allocations and waiting times to stock levels in the hospital pharmacy - is always up to date thanks to digital displays. This ensures smooth processes and a high level of transparency for staff and patients. For example, nursing staff always know which room is free and patients can see up-to-date waiting information. Modern e-ink displays focus precisely on this up-to-dateness, transparency and safety in the process.
  • Relief for staff: Automated digital updates replace the manual replacement of signs. For example, care staff no longer have to relabel paper door signs every morning - instead, patient changes are displayed in the system with a single click. Price labels in the hospital's cafeteria or pharmacy can also be controlled without manual intervention. This significantly reduces the workload of the already busy staff, who can concentrate more on patient care.
  • High accuracy and compliance: Electronic signage ensures that medication prices, dosage instructions or billing information, for example, are always displayed correctly and up to date. This avoids errors when dispensing medication and reliably complies with regulatory requirements (e.g. correct labeling of reimbursable medicines). Ultimately, this increases patient safety and ensures seamless documentation in hospital operations.

Digital signage solutions help healthcare facilities to manage information more efficiently and significantly reduce the workload. Whether for room signage, patient communication or price labeling - up-to-date, centrally controlled displays contribute to a better overview, safety and time savings in everyday hospital life. Electronic displays thus create an important basis for modern, reliable processes in the healthcare sector.

Would you like to find out how digital signage can be used effectively in your facility? We will be happy to advise you.

Dynamic pricing offers specific optimization potential in various sectors - from more efficient pricing processes to faster reaction times to market changes. Digital price tags form the technical basis for this: they enable precise, centrally controlled and error-free price updating. The examples illustrate how this technology can be used effectively in a wide range of applications - always with the aim of improving processes and ensuring long-term competitiveness.

5th OMS Retail: Your partner for digital price labeling - from planning to operation

The introduction of Electronic Shelf Labels (ESL) is a decisive step towards modern, automated pricing in retail and industry. We provide companies with comprehensive support - from the initial consultation to technical implementation and long-term support. Our focus is on efficiency, scalability and seamless integration into existing systems.

Dynamic pricing based on digital price tags makes it possible to control prices centrally and in real time. This not only saves time and costs, but also improves price consistency, reduces error rates and opens up new strategic scope. In combination with clear rules and well thought-out implementation, competitive advantages can be realized that have a long-term effect.

Would you like to take the next step? Then let us examine together how you can use dynamic pricing profitably - we will be happy to advise you!

Get in touch now Our ESL service

UTILIZING ESL EXPERTISE

Your way to digital price labeling!

For further information, please contact Mr. Christoph Lange for a non-binding consultation.

Christoph Lange - Contact for digital price tags and retail services

Christoph Lange

Our ESL expert will be happy to advise you.

Mail: info@oms-retail.com
Call: +49 (0)511 / 515 283-0

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