15. Example
• Differential Pricing
• Progressive Pricing
• What’s 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.