In this system, prices rise and fall depending on demand
Dynamic pricing, which has been used by airlines for years, is now moving to other industries, such as restaurants.
At The Blind Burro, a San Diego bar, tequila prices are displayed by brand on TV screens, and they change throughout the night. Prices are determined by what people are ordering, and software created by Los Angeles-based company, The Drink Exchange, tracks what drinkers are buying and tells the bar when prices should go up or down, reports The Associated Press.
“In the old days, dynamic pricing was thought of as a pricing technique used in fixed capacity industries such as airlines,” says Rafi Mohammed, a pricing strategist. “But the new thinking is dynamic pricing can be used in any industry where demand or supply fluctuates.”
Dynamic pricing is increasingly seen in zoos, sports and theater venues, and even Uber raises fares at peak times when more people need rides. Software companies have reported increased demand for their services. The Drink Exchange’s software, for example, is being used in more than 20 restaurants and bars.
Wondering where to drink this weekend? Check out our roundup of the 150 best bars in America.