By 2001 various companies like IBM, Hewlett-Packard and Dell have adopted dynamic pricing for their e-commerce operations. Pricing in each of these companies depended on different factors. The sales figure of computer memory chips and processors helped in setting prices for Dell. In IBM pricing relied on the life-cycle of the product. Every 6-8 months a new model of laptop is introduced. The price is highest at this stage. With its introduction the older ones see a fall in their price. Thus pricing is different at different stages of life-cycles of the product.

Hewlett-Packard used 'contextual pricing' as its approach to dynamic pricing. For instance, on the launch of a product special promotional deals were offered. The total number of items bought during such occasions would decide what customers would pay overall.

By early 2000s sites like e-bay held online auctions. Here the customer would bid for a product. Companies trying to get rid of excess stocks could now sell the product at some profit rather than sell the product to some third party reseller for absolutely cheap rates. Apart from auction e-bay also has products at sale for fixed prices. Customers get better deals at sites like e-bay and Priceline.com than they would thorough traditional ways. Customers bid for cheaper air tickets, automobiles etc and guarantee their payment with a credit card. The site then looks for sellers willing to sell at this offered price. To make such deals more practical buyers are needed to show flexibility regarding brand-names, features, time of delivery etc.

Price is one of the four major 'P's of the marketing mix. The four 'P's that make the marketing mix are price, place, product and promotion. Pricing is of great importance as

When developing the price of a new product there is no single method that can be adopted. However these steps are generally taken before the price for a product is set.

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