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30 Examples of Price Differentiation

Price differentiation is the process of charging customers more or less depending on their price sensitivity or based on proxies of price sensitivity such demographics or geographic location. This includes premium or early access for customers with a high willingness to pay. However, price differentiation is often centered around charging a reasonably high standard price and then finding ways to offer discounts to price sensitive customers. The following are common price differentiation techniques.
Bundle pricing
Clearance pricing
Corporate pricing – often higher prices than consumer prices
Early bird pricing
Flash sales
Group discounts
Last-minute deals
Limited time offers
Location-based pricing
Low cost versions with limited features
Loyalty rewards
Member pricing
Multi-tier pricing
Negotiated prices
Premium product versions
Price matching
Price skimming - a high price at launch to leverage the willingness to pay of brand or product enthusiasts who want to be first
Rebate discounts
Referral discounts
Sales and discounts
Seasonal pricing e.g. low season for a resort area
Seasonal sales
Senior discounts
Student discounts
Surge pricing – higher prices in peak periods
Time-based pricing
Trade-in discounts
Volume discounts
Price differentiation considers consumer behavior. For example, if you are price sensitive, you may be willing to jump though hoops to get a better price such as collecting coupons or waiting for a sale. If you have high willingness to pay you may buy at your own convenience.


This is the complete list of articles we have written about pricing.
Algorithmic Pricing
Bargaining Power
Benchmark Price
Price Fixing
Cost-plus Pricing
Price Gouging
Customary Pricing
Decoy Effect
Everyday Low Price
Marginal Utility
Willingness To Pay
Dynamic Pricing
High-Low Pricing
Market Value
Flat Pricing
Loss Leader
Predatory Pricing
Price Discrimination
Snob Effect
Market Price
Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
More ...
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