What Is Variable Pricing?

The variable price policy refers to that the price of a product formulated by a chain enterprise is sometimes higher than the competition, and sometimes lower than the competition. The price of the same product often changes, or the price is often used to promote sales. Variable price policies are becoming more popular in China. [1]

Variable price policy

The benefits of the variable price policy are as follows: ^[1]

The variable price policy does have the following disadvantages: ^[2]

First, it needs to be equipped with strong sales personnel, which leads to higher sales costs;

Second, bargaining wastes too much time;

Third, the need to establish pricing institutions;

Fourth, it causes dissatisfaction of some customers;

Fifth, salespeople may be encouraged to cut prices at will to increase sales;

Sixth, it increases the trouble of processing orders and accounting accounts, especially for wholesalers who operate many varieties.