The pricing curve, or curved pricing, is a pricing strategy where a business charges different prices for the same product or service based on various factors, such as the customer's willingness to pay, the quantity purchased, or the time of purchase.
Examples of curved pricing include volume discounts, loyalty programs, dynamic pricing (where prices change in real-time based on supply and demand), and price skimming (where a high initial price is charged and gradually lowered over time).
The goal of curved pricing is to increase profits by capturing more revenue from customers who are willing to pay more for a product or service, while still attracting customers who are price-sensitive. This can be especially useful for small businesses in the UK that may have limited resources and need to optimise revenue.