Segmented Pricing
Using Price Fences to Segment Markets and Capture Value
SPG Insights
Spring 2006

Abstract:
The use of segmented pricing—the practice of charging different customers different prices—is a critical element in every marketer’s toolkit. Yet if charging different customers different prices were easy, everyone would do it. So how can it be done? The answer is by creating a profit-driven price structure that varies not just the price, but also the offer or the criteria to qualify for it. This can be achieved through price fences.

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