Mark F Jones, the food and drink lawyer, legal expert and partner at Gordons LLP, in Gordons LLP Head office

Food and drink lawyer, Mark Jones speaks to BBC Radio about dynamic pricing

Tuesday 19th September 2023

Food and drink lawyer, Mark Jones has spoke to BBC Radio this week regarding two different approaches that the food & drink and hospitality sector have been using to boost profitability in the tough financial climate.


Dynamic pricing

It is increasingly common in other industries that price is relative to demand. It is something consumers can come to expect, the most obvious example being travel, peaking in school holiday periods, or in regular commuting times. The approach has the double benefit of maximising revenues at peak times but also encouraging transactions in quieter periods, for those more flexible and looking to take advantage of a better price. It is questionable that the drinks industry introduces this strategy due to the already necessary regulations in place to protect vulnerable consumers. However, if the move proves to be successful, it is possible that others will follow suit.


Something that is complained about quite often by consumers is the reduction in units or weight of food items on the shelf, in order to keep the price of the product the same. Labelling has to be clear so that consumers can see the price per unit of a product and perceptive consumers may notice if this changes, but there is no requirement to inform consumers that a product has changed from one weight to another.

It is unavoidable that producers are looking at ways to pass on increasing costs to the end user, and this tactic can be seen as perhaps a kinder way to do so than simply putting the price up. Manufacturers can hope to rely on apathy or perhaps brand loyalty to smooth over any customer dissatisfaction.

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