Thoughtful & profitable pricing: What is price segmentation?

How do you make sure you give the right prices to all the right people? It’s a difficult question to answer, but the best strategy is price segmentation. Let’s dive into how price segmentation unlocks greater profit potential.

Prices are rarely static, even when a product or service doesn’t change. Many variables can lead a price to change. Also, different people are willing to pay different prices. 

To account for variation between customer groups, price segmentation helps you maximize profits while meeting customer needs.

What is price segmentation?

Price segmentation (price differentiation) means offering different groups of customers different prices. Different groups of customers (segments) pay a different price based on any mix of a wide range of factors.
Simply put, price segmentation means applying different prices based…