Dynamic Pricing is a pricing tool based on an algorithm that finds the optimal consumer price of a Surprise Bag. Based on various factors like store location, Surprise Bag type, and consumer purchase history. The Dynamic Pricing tool will continuously adjust the consumer price of a Surprise Bag in order to optimize both the number of Surprise Bags saved and our partners' revenue. The Dynamic Pricing tool may determine that the optimal price for a Surprise Bag or a Store location in general is the original fixed pricing or it may determine that the continuous adjustment of pricing is more optimal for a specific Surprise Bag or Store location.
If the Dynamic Pricing tool determines that continuous adjustment is the optimal choice based on the underlying algorithms, e.g. how many of your Surprise Bags typically get saved compared to the total number of Surprise Bags you have available within a given sales window, the starting consumer price of your Surprise Bags at the beginning of each sales window may vary from day to day if you have toggled on the Dynamic Pricing tool.
Throughout the sales window, the Dynamic Pricing tool may continuously adjust the price based on real-time supply and demand to help increase the likelihood of your Surprise Bags getting saved.
The graph below visualizes the principles of Dynamic Pricing.
Explanations and caveats for Surprise Bags subject to continuous price adjustment
- The starting consumer price will be set based on how many of your Surprise Bags typically get saved compared to the total number of Surprise Bags you have available within a given sales window.
- Continuous pricing adjustments will set the consumer price to the original Surprise Bag value discounted by 40-75%.
- Continuous pricing adjustments operate with five price levels (1-5 in the graph). For how long a Surprise Bag is available at each of the five levels within its sales window will depend on the length of the sales window in question and on how many of your Surprise Bags typically get saved compared to the total number of Surprise Bags you have available within a given sales window.
- Any additional Surprise Bags added after a given sales window has started will be priced at the price level applied at that time.
- It is entirely voluntary for Too Good To Go’s partners if they wish to turn on the Dynamic Pricing tool. If turned on it is an instruction from the partner to apply the tool and set the consumer prices of SurpriseSurprice Bags in accordance with the tool.
- Too Good To Go assumes no responsibility with regards to the Dynamic Pricing tool.
- The Dynamic Pricing tool can be turned on in MyStore.
- The Too Good To Go fee (excl. VAT) for each Surprise Bag saved through continuous price adjustment will be the fixed percentage of the Consumer Price (save for situations where the minimum fee applies due to the low price of the Surprise Bag) displayed in your MyStore account.