Definition of Yield Pricing
It’s a type of variable pricing strategy where you try to make the most profit from knowing, waiting for, and impacting the way shoppers act from an established and time-sensitive means.
Description of Yield Pricing
Here, companies begin with getting an true prediction of when your on and off peak times are. That allows them to have a plan ahead of time. When you have a plan, you’ll sell items at the best price at the best time.
Advantages of Yield Pricing
If utilized properly, you can make the most profit possible when there’s lots of demand and have the most retention when there isn’t as much demand.
Disadvantages of Yield Pricing
Customers could feel a sense of price discrimination. They wouldn’t like knowing that a company sells the same thing at various prices depending on the period of time. That could cause your loyal customer base to decrease.