Geographical Pricing

                        
Geographical pricing adjusts the selling price of a product or service according to a customer’s location.

Geographical Pricing Examples

    Being charged a high shipping price for ordering something from Sweden to Mexico
    Having a minimum order limit on abroad shipments

Deeper Insights

Geographical pricing essentially reflects the cost of shipping to different locations. Many businesses adjust their rates to customize for certain places because it is more expensive to ship overseas. That is why the next time you purchase something from California, and have it shipped back to your home, you’ll want to ship it to your address in New York rather than your parent’s home in China.

          

This pricing works because sellers needs to make sure they cover their costs, especially on shipping to a far away country. If a product is highly sought after and is only made in one country, that country will have leverage when it comes to geographical pricing.

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Related Keywords: Price Discrimination, Premium Pricing, Price Elasticity, Revenue Optimization