Customer confusion. If prices change constantly, customers can become confused by the situation and be attracted to those sellers who do not use dynamic pricing. Thus, it can result in a loss of market share.
Inventory management. Sudden changes in price can alter the demand for goods, which makes it difficult to plan for inventory replenishment.
Increased marketing activity. It may require an expanded marketing presence in the marketplace to communicate pricing changes to customers.
Printed price changes. If used in a retail environment, it requires considerable activity to update prices on products as soon as the system alters prices.
Competitor monitoring. If the entire industry adopts dynamic pricing, then a company must invest in competitor price monitoring systems, to see if its prices are similar to those offered by competitors.