Dynamic Pricing for a Multiproduct Consumer Electronics Trade-in Program

Boosting Profits of Trade-in Programs Through Smarter Pricing As electronics trade-in programs expand worldwide, firms face complex pricing challenges: quoting offers instantly while managing vast product varieties and uncertain demand. In the article “Dynamic pricing for a multiproduct consumer electronics trade-in program” in Operations Research, the authors address this challenge and present effective solutions. The study develops pricing policies that determine both trade-in offers and resale prices over time to maximize profits. It first introduces a static pricing approach and proves that it performs nearly optimally; then, it further proposes a dynamic “batched-adjustment” policy that adapts to demand uncertainty and delivers an improved profit performance. Numerical experiments confirm the advantages of these methods. By demonstrating simple yet powerful strategies with provable effectiveness, the research offers firms actionable tools to increase profitability in trade-in operations.