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8 Examples of Variable Pricing

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Variable pricing is the use of data to set fine-grained prices. It's the basis for pricing techniques such as revenue management, dynamic pricing and yield management. The following are common examples of variable pricing.

Price Discrimination

Price discrimination is any pricing strategy that attempts to sell both to customers who are price sensitive and those who are relatively insensitive to price. For example, a manufacturer of sunglasses may set a low price for unpopular colors. Customers who are price sensitive may be tempted to buy a color that is on sale. Customers who aren't price sensitive will buy the color they prefer.


Lowering a price based on inventory levels to clear items. Alternatively, a price may go up when an item is selling fast and you'll soon run out of stock.


Basing prices on competitive intelligence. For example, lowering a price when a competitor launches a new product that is a threat to your market position.


Setting prices based on supply & demand forecasts. This can be done at a fine-grained level such as a seat on a flight. If you forecast that a particular seat might not sell you might offer it at a low price.

Dynamic Pricing

Dynamic pricing is a term for variable pricing that occurs in real time. For example, an ecommerce site that uses algorithms to set prices based on data such as inventory levels.

Peak Pricing

Setting higher prices during peak hours for infrastructure with fixed capacity such as roads.


Pricing can be used by cities and nations to meet sustainability goals such as air quality levels. For example, vehicle registration and license fees based on the emissions of the vehicle.

Yield Management

Yield management is the science of pricing inventory that occurs at a point in time such as a seat on a flight or a hotel room. Such inventory is limited in supply and may generate high prices when demand is high. Alternatively, such inventory goes to waste if it is not sold and is often discounted.
Overview: Variable Pricing
The use of data to set prices at a low level of granularity.
Related Concepts


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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The common types of pricing.

Pricing Examples

An overview of common pricing strategies.

Pricing Strategy

An overview of common pricing strategies.

Sales Promotion

The common types of sales promotion.

Price Optimization

The common ways to optimize pricing.

Flat Pricing

A definition of flat pricing with examples.

Revenue Management

The definition of revenue management with examples.

Dynamic Pricing

The common types of dynamic pricing.

Pricing Objectives

The common types of price objective.

Benchmark Price

A definition of benchmark price with examples.

Price Escalation

The two common meanings of the term price escalation.

Price Discrimination

A list of price discrimination strategies.

Price War

An overview of price wars.

Price Economics

A list of price economics principles and theories.

Premium Pricing

A definition of premium pricing with examples.

Penetration Pricing

A definition of penetration pricing with examples.

Channel Pricing

A definition of channel pricing with examples.

Supply And Demand

An overview of supply and demand with examples.

Value Pricing

The definition of value pricing with examples.
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