variable pricing

variable pricing definition - business

variable pricing

A policy of pricing a good or service at different levels for different customers or sales events at different times. For example, an electric utility serving customers in Georgia may charge a higher price per kilowatt hour during summer months, when air conditioning is in heavy use and the utilities are required to put inefficient generators in service. Many movie theaters offer lower prices during matinees, when demand is typically light. Also called flexible pricing.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.