15. Example
โข Differential Pricing
โข Progressive Pricing
โข Whatโs the Solution?
The term differential
pricing is also used
to describe the
practice of charging
different prices to
different buyers for
the same quality and
quantity of a
product, but it can
also refer to a
combination
of price differentiati
on and product
differentiation.
In the Progressive Pricing method, there is no single unit-price for the entire
order. Each unit ordered is priced according to the "quantity interval" in which it
falls. If 25 units are ordered, the first 9 may be priced at $5, and the remaining 14
may be priced at $4. If 100 units are ordered, there the total order may be
distributed across several unit prices.