Details and Pricing Change Based on Location

1. How does location influence price?
2. What is location based pricing?
3. Why is changing pricing strategy important?
4. What is dynamic pricing structure?

How does location influence price?

Understanding Geographical Pricing

If a market is closer to where the goods originate, the pricing may be lower than in a faraway market, where the expense to transport the goods is higher. Prices may be lower if the goods compete in a crowded market where consumers have a number of other quality options.

What is location based pricing?

What is location-based pricing? Location-based pricing is a strategy used to more accurately reflect the costs of doing business in a certain area or to align better with the price sensitivities there. With this pricing method, prices are set differently depending on the locality doing the purchasing.

Why is changing pricing strategy important?

Today, with major companies focusing on pricing their products in relation to their values, companies that lack a value-based pricing strategy may lose sales and market share to competitors. Therefore, companies must leverage new product pricing strategies to efficiently price their products.

What is dynamic pricing structure?

Dynamic pricing — also known as surge pricing, demand pricing, or time-based pricing — is a strategy where businesses adjust the prices of their offerings to account for changing demand. For instance, an airline will shift seat prices based on seat type, number of remaining seats, and time until the flight.