How to implement Dynamic Pricing in brick-and-mortar stores: Electronic Shelf Labels

Benefits of applying Dynamic Pricing using Electronic Shelf Labels 

ESLs are smart digital labels that can be used on shelves in brick-and-mortar stores to display prices, product information, promotions or even ads. This technology simplifies day-to-day work in physical stores. 

Review pricing agilely and regularly

The main advantage is that ESLs make it possible to change prices quickly and easily. Depending on the size and resources of the store, it may even be possible to update prices in real time in line with variations in supply and demand, to achieve a higher conversion rate. For example, stores can reduce prices at off-peak times to attract more customers, or increase them when demand is higher to optimize profit margins.

Add a competitor price monitoring tool, with good repricing functionality into the mix. The tool’s advanced algorithms will recommend the most suitable prices for all products in your catalogue. 

Cost savings

Electronic shelf labels also deliver greater cost savings, as there is no need to print new labels every time prices change, which boosts the competitiveness of brands and retailers. Likewise, employees do not need to go around the store changing the labels. They can do it remotely or via the network. Maintenance costs will also be lower since these systems do not require any special equipment to function on a day-to-day basis.

Brand image and customer satisfaction  

As with Dynamic Pricing in online commerce, dynamic pricing in physical stores can help maintain consistency in pricing, resulting in greater consumer confidence. Monitoring prices and having the ability to amass a data history, will ensure you do not lose sight of your base prices and any fluctuations applied. These must reflect the perceived quality of the products and the brand. Traditional paper labels make this more complicated and expensive in terms of time and resources. 

Electronic Shelf Labels, or ESL, can include extra product information, just like an online landing page. This speeds up consumers’ final purchase decisions and helps build an atmosphere of greater transparency in the store. 

Ultimately, combining Dynamic Pricing and Electronic Shelf Labels will ensure you have tighter control and help boost price optimization at physical points of sale. Given its benefits, if you decide to use this resource, advanced digital software with machine learning will help support the company’s growth further.