- In a free webinar at 8 a.m. (ET), Thursday, September 9, leaders in dynamic pricing will discuss using the model to improve pizza delivery.
- Research has shown that dynamic pricing increases demand variation, reducing the difference between peak hours and quiet times.
With nearly 300 pizzerias in Finland, Kotipizza is the largest pizza chain in the Nordic countries. The company is also an innovator in dynamic pricing, letting demand determine the price of its home-delivered pizzas. And to help American pizzeria operators learn how to use a similar model, Kotipizza Group and Priceff, a Finnish company specializing in dynamic pricing, will host a free webinar on the topic at 8 a.m. (ET), Thursday, September 9.
Click here to sign up for the webinar. If needed, use the passcode 688842.
Alexander MacKay, an assistant professor at Harvard Business School, will discuss “Perspectives on Pricing and Competition” in the webinar. Kotipizza CEO Tommi Tervanen and Priceff executive Anders Ekholm will also participate in the discussion.
In the dynamic pricing model, the food’s price varies according to demand. Dynamic pricing has been commonly used for years for booking hotels and airplane tickets as well as in online stores.
Dynamic pricing has been tried out in the restaurant sector here and there over recent years, but Kotipizza is the first Finnish chain to adopt the model with home pizza delivery. The company first tried out the approach in in May 2019, offering delivery prices varying between €0.10 and €5.90.
According to Priceff, research has shown that dynamic pricing increases demand variation, reducing the difference between peak hours and quiet times. Evening out the demand lets restaurants improve their delivery service while increasing revenue.
At its best, pricing on the basis of demand can reduce food waste and enhance the home delivery experience for customers, said Johanna Kuosmanen, Kotipizza Group’s digital and customer experience director. “For Kotipizza, dynamic pricing is an important tool as home deliveries of pizza are becoming increasingly important,” she said. “Using this tool, we can ensure that all of our customers receive a hot pizza at their front door just when they want it.”