Definition of Time-based Pricing
It focuses on arranging the best prices to make the most profit margins around opportunity, interest, and the lifespan of an item.
Description of Time-based Pricing
This pricing strategy focuses on that fact that you pay the price of something based on when you use it. For example, if you purchase an airplane ticket during the holidays, the prices will be much higher than during the off-season.
Advantages of Time-based Pricing
When you decrease the price, for instance, then you can help increase some lifeless sales. At the same time, you can also increase profits when you raise your prices in times when demand is high, such as during a specific season. Through this strategy, you’ll always be in the know of trends as well as what your rivals are offering so that you can stay on top.
Disadvantages of Time-based Pricing
Some shoppers may really dislike this strategy, so they’ll refrain from using either your item or service. They could even get frightened from the constant price changes.