Dynamic pricing and personalized pricing are transformative strategies in the digital age, potentially increasing profits by 3% to 25%. Dynamic pricing adjusts prices in real time based on demand, supply, and competitor pricing, while personalized pricing targets individual consumers based on their willingness to pay. Implementing these strategies requires overcoming challenges like adverse consumer reactions, privacy regulations, and IT infrastructure limitations. Companies must carefully design their pricing approach, aligning it with market factors, consumer behavior, and internal goals to fully unlock their profit potential.

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