Pricing Tactics

Discounts and allowances are reductions to a basic price of goods or services and can occur anywhere in the distribution channel.

Value-based pricing seeks to set prices primarily on the value perceived by customers rather than on the cost of the product or historical prices.

Geographical pricing is the practice of modifying a basic list price based on the location of the buyer to reflect shipping costs.

Transfer pricing describes all aspects of intracompany pricing arrangements between business entities for goods and services.

Penalties, in the form of fees and restricted user access, exist for consumers who violate terms in contracts.