What is a variable price?

Variable prices is a marketing approach that allows different rates to be extended to different customers for the same goods or services. This approach is often used in cultures where it is considered a norm, or it is possible that drinking over the price of goods was considered a bid situation, for example in auction. Even in countries where standard prices are standard prices, it can happen to the game when the customer undertakes to buy large volumes of goods or services. In the case of this, the customer must usually observe specific criteria to enjoy prices that differ from standard costs.

Strategy with variable prices differs from a fixed price policy that prevails in many situations. At a fixed price, the seller evaluates all relevant factors, determines whether the buyer should receive a rate that differs from the standard price, and then extends this price for all purchases during the specified period of time. Usually the contract is used to lock these discounted rates for the period of agreed clusterand seller. On the other hand, variable prices are usually extended once. If the customer wants to place the second order later, the circumstances are assessed again and alternative prices are issued if the seller believes it is deserved.

One of the classic examples of the use of variable prices concerns street sellers who sell different types of small goods. A standard price is often published for each item. If the seller really wants to sell the item and finds that a potential buyer is not willing to pay the price, he can involve the individual in the negotiations on the sale price. Sometimes referred to as dickering, buyers and seller offers offers back and forth until they can settle at a price that both believe is fair. Throughout the process, the buyer tries to reduce the price as much as possible, while the seller is trying to get the highest possible sales return.

The real estate market also works using variable prices. Potential homeowners often present offers for real estate, which are lower than the published prices published, in the hope that the owners will receive a smaller amount. This often leads to a number of offers and countertopers that sometimes lead to ongoing sales. Other times, both parties cannot equalize and there is no sale.

variable price provides certain advantages, but also has the potential for disadvantages. On the one hand, sellers can use this pricing strategy to move goods or services that could not work as expected, allowing them to get a modest profit or at least gain their investment in the products. The possible prices of the variable is that the complaint about the loss of other customers who paid the full price for their purchases if they find that the newer customer could get a lower price.