Dynamic pricing in agribusiness

The work addresses the theoretical and methodological aspects of dynamic pricing, as one of the modern methods for maximizing income in the context of business processes digitalization. Basic principles of dynamic pricing used in algorithms and methods are disclosed. As part of the development of a decision support system, a simplified model has been proposed to determine the most preferred level of prices for a particular type of product. The algorithm used is based on the known theoretical postulate of the total income dependence on demand price elasticity. The study examined the honey market in the Russian Federation over the past twelve years. The annual percentage increases in production indices and the product price index were used as input data. Static and dynamic elasticity was analyzed. To find dynamic elasticity, a regression model is formed for the dependence of the percentage change in price on the sold goods quantity. Model parameters within the specified statistical significance were found. On average, there is low elasticity over the entire time under consideration, as well as there is not functional (abnormal) demand in this case. This fact, of course, confirms that honey is a special product for the domestic consumer. As a further development of the research, it is planned to expand the number of factors in the model and consider the problem of maximizing not only total income, but its derivatives, including margin and operating profit, profitability. This approach can be used for preliminary analysis and forecasting of certain goods market conditions produced or sold by agribusiness organizations.