What is pricing?

The price of goods plays a crucial role in determining an efficient

distribution of resources in a market system.

 Price acts as a signal for shortages and surpluses which help

firms and consumers respond to changing market conditions.
 If a good is in shortage – price will tend to rise. Rising prices
discourage demand, and encourage firms to try and increase
supply.
 If a good is in surplus – price will tend to fall. Falling price
encourage people to buy, and cause firms to try and cut back on
supply.
 Prices help to redistribute resources from goods with little
demand to goods and services which people value more.
 Adam Smith talked about ‘the invisible hand‘ of the market. This
‘invisible hand’ relies on the fluctuation of prices to shift
resources to where it is needed.

History of Pricing
The History of Pricing

360 pi presents THE HISTORY OF PRICING from 1200 BC - 2013 With the
continued prevalence of showrooming and comparison shopping, it seems like
pricing in retail is constantly shifting and changing. But how did we get here?
What were the events that lead up to the current situation? THIS
INFOGRAPHIC GIVES YOU A BRIEF OVERVIEW OF THE MAJOR EVENTS
THAT HAVE SHAPED PRICING TODAY Earliest record of the use 1200 BC
of currency and prices Earliest known for a roman soldier 72-125 (AD written
shopping list The first shopping mall, The Royal Exchange, opens in 1568 the
UK. A.T. Stewart establishes the first one-price system, establishing fixed
prices for all of his goods and paving the way for the price tag 1846 did yeu
hno? Before the price tag, most buying was done by haggling 1861 John
Wanamaker introduces THE PRICE TAG in Philadelphia, solidifying
standardized pricing as we know it First mail order catalog 1872 First working
cash register 1884 comes to use THE is invented 1895 COUPON Late 1800s
PSYCHOLOGICAL PRICING, SUCH AS PRICES ENDING IN .99,
BECOMES POPULAR 1936 The shopping cart is invented The first concept is
patented 1952 BAR CODE 1962 Wal-mart Opens Barclaycard ,the first UK
credit card is 1966 made available Early bar-code scanners become available
1973 12345 67890 The UPC is invented o 1234> First IBM 3653
computerized cash registers introduced 1976 hello did you knou ? Michael
Aldrich invented the technology to enable online shopping Online transaction
processing technology orld is invented 1979 The *80s This period saw the
tremendous expansion of discounters such as Wal-Mart, Kmart, plus other
national chains like Sears and J.C. Penney. BIG BOX AND CATEGORY
KILLERS NEWS In an experiment done by the local Social Services The first
purchase online is made to buy groceries 1984 Department, Jane Snowball,
72 orders groceries from Tesco using a modified TV connected to a phone
line 1991 The Internet is commercialized First online book store, Book Stacks
Unlimited, is launched 1992 ebay First online transaction occurs: the purchase
of a mushroom 1994 and pepperoni pizza, with extra cheese. amazon.com
Amazon (then called Cadabra) and eBay launch 1995 First Comparison
Shopping Engine becomes available: Price Transparency is born
mCommerce is born when Coca Cola in s Finland accepts SMS as payment
1997 Thank you Price Intelligence is born 1999 did gou hnou? Cyber Monday
is a marketing term for the Monday after Black Friday and was created by
marketing companies to encourage people to shop online 2001 Amazon
launches mobile service The term "Cyber Monday" is coined 2005 Paypal
Mobile launches, allowing users to make payments by SMS 2006 360 oi starts
development of its price extraction technology 2008 Digital price tags are
released 2009 Live price extraction is launched, allowing for major
improvements in pricing intelligence by companies such as 360i Retailers and
smart phones start using QR code technology 2010 The rise of smart phone
usage results in the popularization of mobile-bar code scanning to compare
prices 360 pi launches 360price, a price intelligence solution for retailers 2011
360 pi launches two new product and price intelligence solutions:
360comparables and 360assortment 2012 The term "Show-rooming" is
coined and retailers start to notice the practice during the holiday season
Omnichannel retailing continues to gain popularity 2013 360 pi expands
solution offerings to include 360recommendations as well as 360mobile, a
product that allows retailers to access valuable price data in-store Today AS
OF 2013, 67% OF RETAILERS HAVE EITHER DEPLOYED PRICE
INTELLIGENCE OR ARE IN THE PROCESS OF DOING SO.