How Dynamic Pricing Works

Dynamic Pricing is powered by Zuora's Business Context service, which brings real-time contextual attributes into pricing decisions.  This means you can adjust pricing dynamically based on where a customer is, what type of organization they belong to, or other business conditions without duplicating catalog entries. 

For example, a customer in California may see an additional state-level compliance fee, while users in APAC might receive discounted pricing to reflect regional market sensitivities. Similarly, you can apply different adjustments for educational or nonprofit organizations compared to commercial ones, or distinguish pricing between public and private sector customers.

Dynamic Pricing also supports more advanced models. You can set up MRR-indexed pricing, where discounts automatically apply once monthly recurring revenue passes a threshold, for instance, $10K triggers a 20% discount. Surge-based models are another option, where pricing increases when demand spikes. External data sources, such as competitor rates or market indexes, can also be used to drive updates.

This approach helps reduce catalog complexity, avoids SKU sprawl, and makes it easier to maintain consistent pricing strategies across regions and use cases.

With Dynamic Pricing, you can:

• Build data-driven pricing strategies that improve conversion and customer experience.
• Adjust quickly to market or regional demands without duplicating catalog entries.
• Streamline catalog management, reducing complexity while maintaining pricing accuracy across geographies and use cases.
• Replace static SKUs with dynamic, rules-based pricing logic that scales with your business.