Today, the first signs of this new fluid pricing can be found mostly on the Internet. Online auctions allow cybershoppers to bid on everything from collectibles to treadmills. The pricing revolution, though, goes beyond the Net. Companies also are creating private networks, or ''extranets,'' that link them with their suppliers and customers. For a company with a large product line, it could take months for price adjustments to filter down to distributors, retailers, and salespeople.
Streamlined networks reduce menu cost and time to near zero.
This will clearly benefit consumers. Already, many are finding bargains at the hundreds of online auction sites that have cropped up. But that doesn't mean sellers get a raw deal. Businesses can gather more detailed information than ever before about their customers and run it through powerful database systems to glean insights into buying behavior. Suddenly, marketers can communicate directly with prospective buyers, offering them targeted promotions on an individual basis.