Demand pricing is a price analysis method where the price of the product is determined and changed based on the target market and market conditions. Instead of charging a flat price from the customers, marketers often employ demand pricing to get a premium from customers.
This tactic uses various factors such as the number of customers browsing for the product, the purchasing history of the target market or the target audience and other such factors. By using all these factors the digital platform uses AI or automation to determine the price of the product and gain optimum value for the product from the customers.
The tactic is effective for businesses like printing where each area and industry has its own set of requirements and the competition can also be thin in certain regions. Demand pricing is an effective way to charge customers based on their necessity of the product and get optimum pricing for the services.
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