Corporate Commercial Pricing Strategies with Definitions

In most of the organisations, any one / all of the following Pricing Policies is/are followed. 

Definitions :- Variable Pricing

Variable Pricing which is also called transaction pricing, or negotiating for price, is when products are sold to similar buyers at different prices. Such a practice should be adopted after a careful consideration of industry practices and norms and the impact on customer behaviour.


Definitions :-  Flexible Pricing

Flexible Pricing is when price is not confirm at the time of entering into a contract but is subject to modification based on certain future events. Such a practice may be adopted to allow the company to adapt with relative ease to the often unpredictable changes in the market place and remain competitive. e.g. incorporating escalation clause in certain pricing contracts (or option to use raw material price on a future date while determining the final price).