Two-sided pricing is the practice of offering segmented pricing based on customers’ willingness to pay, purchasing power and other factors. For example, some companies offer discounts for students and seniors living on a fixed income. Benefits of two-sided pricing include: Increased revenue: Businesses can charge higher prices to those willing to pay more and/or target price-sensitive shoppers with discounts. **Higher profits:**By charging more to customers who derive the most value from the product, businesses can lift their profit margins. Enhanced customer satisfaction: Aligning pricing options with customer preferences offers a win-win for both. Competitive advantage: Two-sided pricing targets a broader swath of the market, potentially winning market share from competitors. Product innovation: By offering premium pricing tiers or add-on features, businesses justify the cost of R&D and continuous improvement.