Give the meaning of Variable Price Method of pricing.

Question

Accepted Answer

**Variable price method** is a marketing approach that permits different rates to be extended to different customers for the same goods or services. The approach is often employed where bargaining over the price of goods is considered the norm, or potential buyers are allowed to participate in a bidding situation such as in an auction. Even in countries where fixed pricing is standard, variable pricing may apply when a customer commits to purchasing large volumes. Classic examples include street vendors who negotiate prices with buyers, and the real estate market where prospective homeowners submit bids below the posted asking price.