Differential Pricing Scheme with respect to Quality and Time

Differential Pricing Scheme

An electronic item is paced at a price of 4X at the start of its launch. For the first year, it is at 4X. For the next year, it is 2.5X. In the start of the 3rd year, it is 1X. After the concept is old, the price is almost free at 0.5X. This is the differential pricing with time.

Also, let us say there are 100 copies of a quality book or publication to be sold. Then, for an estimate sell of 100 copies, the price is 1X. For an estimate of 50 copies, the price is 1.5X, and for an estimate of 30 copies, the price estimate is 2.0X.

However, there are a few concerns-

  1. The product life is estimated to be long enough for case 1
  2. The product quality is estimated to be at least of higher quality for case 2

A big thanks to my mentor and guide, Sir RK Dhanvada for the conversation which lit me up with this idea.

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