Below is a summary of our discussion with nine top pricing experts on the biggest trends shaping pricing in 2025. You can listen to the full interview using the embedded media player below or in your favorite podcast app (e.g., Apple Podcasts, Spotify, Amazon Music).
As we step into 2025, pricing is becoming more dynamic, data-driven, and AI-powered than ever before. From the rise of hyper-personalized pricing to the risks of unchecked AI automation, retailers must navigate a rapidly evolving landscape where pricing strategies will be critical to profitability, competitiveness, and customer trust.
To help businesses prepare, we invited nine industry-leading pricing experts to share their predictions for 2025. Their insights reveal the biggest trends that will reshape retail pricing strategies and decision-making.
Meet the Experts:
Stephan Liozu – Chief Value Officer, Zillion
Per Sjöfors – Author of The Price Whisperer
Oliver Banks – Retail Transformation Expert, Author of Driving Retail Transformation
Ayon Bhattacharyya – Founder & CEO, Biz Growth Spurt
Markus Husemann-Kopetzky – Founder, Price Management Institute
Danilo Zatta – Pricing Advisor, Author of The 10 Rules of Highly Effective Pricing
Maciej Kraus – Managing Partner, Movens Capital, Author of The Future of Pricing
Tim J. Smith – CEO, Wiglaf Pricing & Adjunct Professor, DePaul University
Alex Halkin – Founder & CEO, Competera
Here are the top 10 pricing trends experts predict will define 2025.
1. AI-Powered Pricing Moves from Experimentation to Execution
AI in pricing has been a hot topic for years, but 2025 marks a turning point: AI-driven pricing is moving from pilot programs to full-scale implementation. Companies are no longer experimenting with AI—they are integrating AI-powered engines to automate price adjustments, analyze real-time demand shifts, and optimize profit margins at an unprecedented scale.
“AI will redefine how companies approach pricing,” says Maciej Kraus, Managing Partner at Movens Capital. “Businesses will dynamically adjust prices based on demand, customer behavior, and external factors. Some are already doing this, setting benchmarks for what's possible.”
AI pricing tools are helping retailers:
- Automate price adjustments based on real-time demand
- Optimize price elasticity by analyzing customer response patterns
- Reduce manual decision-making and increase pricing efficiency
Retailers who fail to implement AI-driven pricing will lose their competitive edge, as AI enables companies to set smarter, more adaptive pricing strategies faster than human teams ever could.
Takeaway: AI-driven pricing is no longer optional—businesses must scale from experimentation to execution to stay ahead.
2. AI Brings New Ethical & Transparency Challenges
While AI pricing offers unparalleled efficiency, it also introduces risks that could alienate customers. Dynamic AI-driven price changes may create perceptions of unfairness, particularly if consumers feel prices fluctuate unpredictably or discriminate based on purchasing behavior.
“AI is the golden goose in pricing—but for some, it will be a complete disaster,” warns Per Sjöfors. “Many companies will use it in ways that alienate buyers, erode trust, and ultimately damage their brands.”
Retailers must ensure AI-driven pricing follows clear, ethical guidelines to avoid backlash:
- Avoid price gouging during demand spikes
- Communicate why prices change to maintain customer trust
- Ensure fairness in pricing across customer segments
Takeaway: AI pricing must be transparent and ethical—retailers must balance automation with customer trust.
3. Trade Policies Will Drive Cost-Push Inflation
Geopolitical instability will have a direct impact on pricing strategies in 2025. With potential tariffs on imports from China, Vietnam, and Mexico, retailers could face higher supply chain costs, forcing price increases across industries.
“Tariffs mean cost increases for American companies selling to global audiences,” explains Per Sjöfors. “Some businesses will be forced to raise prices, but if they don’t understand what their customers are willing to pay, any price increases will be a shot in the dark.”
Retailers must:
- Closely monitor global trade policies and adjust pricing models accordingly
- Explore alternative sourcing strategies to mitigate tariff costs
- Use AI-driven demand forecasting to anticipate consumer reactions to price changes
Takeaway: Retailers must prepare for pricing volatility driven by rising costs from global trade policies.
4. Marketplace Pricing Becomes a Competitive Necessity
The rise of marketplace platforms like Shein and Temu is reshaping how retailers price their products. To remain competitive, companies will need to embrace marketplace strategies that allow flexible pricing based on global demand and inventory availability.
“As companies strive to lower prices, they’ll increasingly invest in marketplace platforms,” says Oliver Banks. “This allows them to bring in overseas sellers, source inventory more flexibly, and avoid margin erosion.”
Retailers must:
- Integrate marketplace models into their e-commerce strategies
- Adopt dynamic marketplace pricing to adjust to competitor price movements
- Leverage AI to optimize multi-channel pricing for seamless online and in-store experiences
Takeaway: Retailers who fail to adapt their pricing to marketplace competition may struggle to compete on pricing, availability, and global reach.
5. Data-Driven Pricing Becomes a Competitive Advantage
The most successful companies will lean into data-driven pricing models to gain an edge in competitive markets. AI and big data will be used to fine-tune pricing models, enhance customer segmentation, and identify opportunities for margin optimization.
“Big data will play an even bigger role in price differentiation and customer segmentation,” explains Ayon Bhattacharyya.
Markus Husemann-Kopetzky adds: “Companies have maxed out traditional cost-cutting measures. Now, they’re turning to pricing as a growth lever—and data is the foundation.”
Retailers must:
- Invest in AI-powered analytics tools to track pricing effectiveness
- Use real-time customer data to refine personalized pricing strategies
- Improve price elasticity modeling to maximize revenue per transaction
Takeaway: Retailers must invest in pricing analytics to make smarter, more profitable decisions.
6. Hyper-Personalized Pricing Gains Momentum
As AI-powered personalization becomes more sophisticated, retailers are moving beyond basic customer segmentation to individualized pricing strategies. What does this mean for 2025? Instead of offering static discounts or blanket promotions, AI will help retailers set custom prices based on individual behaviors, purchase history, and even geographic location.
“GenAI introduces creativity into pricing, enabling more personalized strategies like custom offers, discounts, and bundles tailored to individual behaviors,” explains Danilo Zatta, pricing advisor and author of The 10 Rules of Highly Effective Pricing.
Retailers that fail to personalize pricing risk losing customers to competitors who optimize prices for each shopper.
Example: A consumer in New York may see a different discount structure than one in Chicago, depending on regional demand, competitor activity, and historical purchasing behavior.
Alex Galkin, CEO of Competera, adds: “Customers expect more personalized experiences. We’ll see pricing tailored to specific geographic locations and what local customers are willing to pay.”
How Retailers Can Leverage Personalized Pricing in 2025:
- Use AI to analyze buying patterns and set dynamic individual prices
- Incorporate localized pricing models based on store-level demand and competitor activity
- Avoid “creepy” pricing tactics—personalization should feel helpful, not exploitative
Takeaway: Expect hyper-personalized pricing to become standard practice, but retailers must ensure transparency and fairness to maintain trust.
7. Subscription & Hybrid Pricing Models Will Expand
The subscription economy is evolving, and in 2025, retailers will blend subscription models with usage-based pricing to increase customer lifetime value (CLV). Why? Consumers want flexibility. Hybrid models allow businesses to offer predictable revenue streams (subscriptions) while benefiting from scalable pricing (pay-as-you-go or usage-based fees).
“Hybrid pricing allows businesses to balance predictable revenue with scalability,” says Ayon Bhattacharyya, CEO of Biz Growth Spurt. “We’re seeing a shift from acquisition-based pricing to retention-based pricing, where businesses focus on keeping customers engaged over time.”
Example: Companies like Amazon are expanding tiered subscription models (e.g., Prime Basic vs. Prime Unlimited) while SaaS companies combine fixed pricing with pay-per-use options.
How Retailers Can Prepare for Subscription & Hybrid Pricing:
- Offer multiple pricing tiers to cater to different customer segments
- Leverage AI to optimize retention strategies (e.g., personalized upgrade offers)
- Ensure pricing flexibility to adjust based on customer usage patterns
Takeaway: Expect hybrid pricing models to gain traction across retail, SaaS, and e-commerce as businesses shift from one-time transactions to long-term customer relationships.
8. Value-Based Pricing Becomes the Gold Standard
With rising costs and evolving consumer expectations, companies will move away from cost-plus pricing and instead focus on customer-perceived value as the primary pricing factor. Why is this shift happening? Cost-based pricing fails to account for how much consumers are actually willing to pay. Instead, businesses will align pricing with perceived value and competitive differentiation.
“Companies must refocus on value drivers,” says Stephan Liozu, Chief Value Officer at Zillion. “We’ll see more companies adopting usage-based, outcome-based, and subscription pricing models where customers pay for actual value received.”
Example: In the SaaS industry, some companies have already moved to performance-based pricing—charging customers only when they see measurable results.
“AI-powered services and digital products will increasingly adopt per-use, per-outcome, or per-task pricing,” adds Liozu.
How Retailers Can Implement Value-Based Pricing:
- Conduct in-depth customer research to understand what drives perceived value
- Develop pricing models that tie costs to customer outcomes
- Use AI-powered elasticity modeling to identify price points that maximize willingness to pay
Takeaway: Value-based pricing will replace outdated cost-plus models, with businesses charging based on perceived value rather than production costs.
9. The "Race to the Bottom" Will Prove Dangerous
Competing solely on price is no longer a sustainable strategy. Many retailers believe cutting prices will win customers, but in reality, a race to the bottom leads to margin erosion, reduced brand equity, and financial instability.
“Only one company can be the cheapest—everyone else in that race is a loser,” warns Oliver Banks, retail transformation expert and author of Driving Retail Transformation.
Example: The collapse of Red Lobster’s "Endless Shrimp" promotion—which led to $11M in losses—illustrates the risks of aggressive discounting.
“Retailers must focus on pricing strategy—not just lowering prices,” adds Banks. “The key is understanding price elasticity and using promotions strategically to drive profitability—not just volume.”
How Retailers Can Avoid the Price War Trap:
- Focus on differentiation—compete on value, not just price
- Use strategic promotions rather than blanket discounts
- Invest in AI-powered elasticity modeling to test price sensitivities before making major pricing shifts
Takeaway: Competing on price alone is unsustainable—retailers must prioritize value, experience, and strategic differentiation.
10. Pricing Teams Will Evolve into Revenue Intelligence Units
Pricing is no longer just a finance function—in 2025, pricing teams will become integrated revenue intelligence units, working closely with AI, data science, and sales teams to drive company-wide profitability.
“Pricing will no longer be a standalone function,” says Stephan Liozu. “It will become an integral part of revenue intelligence, integrating with AI-driven analytics, predictive modeling, and sales enablement tools.”
Retailers will invest in AI-powered pricing teams to:
- Automate routine price-setting tasks
- Leverage AI for real-time pricing recommendations
- Integrate pricing with sales intelligence tools for deeper revenue insights
Alex Galkin, CEO of Competera, adds: “Merchandisers should stop focusing on pricing—dedicated pricing professionals and AI-driven insights will take over.”
Takeaway: Pricing teams will no longer operate in silos—they will become cross-functional revenue intelligence units that leverage AI and data science to drive business-wide growth.
Final Thoughts: Preparing for 2025
Retailers who embrace AI, personalization, and data-driven pricing strategies will be best positioned for success in 2025. Those who rely on outdated cost-plus pricing models or aggressive discounting tactics will struggle to maintain profitability.
Key Takeaways:
- AI-driven pricing is here to stay—but ethical transparency is crucial
- Value-based pricing will replace cost-plus models
- Hybrid and subscription-based pricing will drive long-term customer relationships
- Avoid the price war trap—focus on differentiation
- Pricing teams will evolve into AI-powered revenue intelligence units
