The dealer sets a price and then haggles with the customer to get a mutually agreeable price. Negotiating is typically done with big-ticket items where there is plenty of room for markup, such as antiques, furniture jewelry, electronics or real estate. Static prices are a set percentage above wholesale cost. This is to ensure a certain profit on every sale. A variant of this is when a business will deliberately sell certain items at a fraction below costs in order to attract customers who will buy more products later.
Variable pricing occurs when the value of an item changes due to season, place or fashion.
Holiday items fluctuate as the day approaches, and then fall through the floor afterwards. Other items may be more popular in one city than another. Value-added pricing involves giving the customer something that makes the goods more valuable. You may have a reputation for better merchandise, a strong brand, a specialized selection for selective taste or the fastest delivery in your neighborhood. This works with higher prices when customers save time and effort or feel they are getting top-notch quality and service.