How can I compare the effect of dynamic pricing vs. not using it?
We set a baseline using your original price. Then we compare performance between dynamic pricing and your price. It’s easy math. Your original price produces X revenue with say, 10% of the traffic. The dynamic pricing produced Y revenue with 90% of the traffic. You can clearly see the difference by comparing X and Y.
In one recent example with a leading brand, 10% of their traffic produced $100,000 with static pricing. With dynamic pricing the other 90% of their traffic produced $1,000,000. Static pricing would have made less revenue with that traffic - only $900,000. Dynamic pricing increased revenue by 11% to $1,000,000.