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Will Dynamic Pricing Change Sales of Car Parts? | PYMNTS.com

Dynamic pricing has produced more than $1 billion in revenue for automakers over the last decade, according to a report from Reuters this week (June 3). The account of that earnings boost not only reveals how the process works, but raises questions about how the use of pricing software might change the automotive and insurance industries, along with the sale of spare parts.

The story involves such manufacturers as Renault, Jaguar Land Rover and Peugeot — potentially more — along with Accenture, software developer Laurent Boutboul and Securite Reparation Automobile (SRA), a group based in France that is “backed by insurers, measures car parts inflation and publishes this in the hope it will help exert downward pressure on parts inflation.”

Boutboul alleges that Accenture used the pricing software in such a way to “damage his reputation because Accenture broke European competition rules,” the report said, which based its story on court filings from France. Boutboul wants approximately $38.6 million in damages.

In a statement to the news agency, Accenture “denied its software was unfair to motorists and said its focus was on increasing clients’ efficiency.”

So-called dynamic pricing is nothing new. At its most basic level, it is simply the extension of supply and demand to digital channels, and through sophisticated software that analyzes traits that might lead to consumers being willing to pay higher prices than they would have, say, the week before. Amazon has earned a reputation for mastering dynamic pricing, and other eCommerce operators — along with organizations that serve the B2B space — are following that example.

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Will Dynamic Pricing Change Sales of Car Parts? | PYMNTS.com.