Differential Pricing
Differential pricing is a strategy where a product or service has varying prices based on customer type or timing. For instance, a zoo might charge Rs. 10 for local visitors and Rs. 100 for foreigners, or a sale price might rise as the deadline nears. Known also as discriminatory or variable pricing, it tailors costs to maximize revenue or target specific groups. This approach leverages differences in willingness to pay, market conditions, or urgency, making it a flexible tool for businesses to optimize profits.
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