Adopting Wendy's New Dynamic Pricing For Your 3PL

Dynamic Pricing For Your 3PL

Wendy's has announced plans to test a "dynamic pricing" model, also known as surge pricing, in 2025. This means prices for menu items could fluctuate throughout the day based on factors like:

Time of day: Prices might be higher during peak hours like lunch or dinner.
Location: Prices could vary depending on the specific restaurant and its local demand.
Demand: If an item is highly popular at a particular time, its price might increase.

There are ways for a fulfillment center owner to adopt a similar dynamic pricing module:

1. Tiered storage and fulfillment fees based on order characteristics:

• Item size and weight: Implement tiered storage and fulfillment fees based on the size and weight of items stored or fulfilled. Larger or heavier items require more space and handling, justifying higher fees.
• Order complexity: Introduce fees based on order complexity, such as the number of items, fragile items requiring special handling, or specific delivery requirements
• Order volume: Offer discounts or tiered pricing for high-volume orders, incentivizing bulk fulfillment and creating long-term partnerships with clients.

2. Dynamic pricing based on demand and capacity:

• Peak season surcharges: During periods of high demand (e.g., holiday seasons), implement temporary surcharges to reflect increased operational costs and incentivize clients to plan ahead.
• Discounting during slow periods: Offer discounted rates during periods with lower demand to attract new clients and fill available capacity.

By adopting a dynamic pricing module tailored to the specific needs of a fulfillment center, owners can increase efficiency, improve capacity utilization, and generate additional revenue.