Customary Pricing

Customary Pricing

Customary Pricing Jonathan Poland

Customary pricing refers to the pricing practices that are considered typical or normal in a particular industry or market. This type of pricing is based on the prevailing market conditions and the expectations of buyers and sellers. Customary pricing can be influenced by a number of factors, including supply and demand, competitors’ pricing, and the cost of production.

There are several types of customary pricing practices that may be used in different industries. One common type is called “list pricing,” which involves setting a fixed price for a product or service based on the manufacturer’s or seller’s costs and desired profit margin. Another type is called “negotiated pricing,” which involves negotiating the price of a product or service between the buyer and seller based on the value of the product or service to the buyer and the seller’s costs and desired profit margin.

Customary pricing can have both advantages and disadvantages for businesses. On the one hand, it allows businesses to establish a reputation for fair and consistent pricing, which can build trust with customers and encourage them to continue doing business with the company. On the other hand, customary pricing can be inflexible and may not allow businesses to respond quickly to changes in market conditions or to take advantage of opportunities to increase profits.

In order to determine the most appropriate pricing strategy, businesses should consider a number of factors, including their target market, competitors’ pricing, and the value of the product or service to the customer. It may also be helpful to conduct market research to gather data on pricing trends and customer expectations in order to inform the decision-making process.

Overall, customary pricing can be an effective way for businesses to set prices and build trust with customers, but it is important for businesses to remain aware of changes in market conditions and to be prepared to adapt their pricing strategies as necessary.

Learn More
Market Position Jonathan Poland

Market Position

The market position of a brand, product, or service refers to its place in a crowded market. It is the…

What are Tactics? Jonathan Poland

What are Tactics?

Tactics are short-term, immediate strategies that are designed to respond to fast-changing realities and situations. They are focused on taking…

Administrative Skills Jonathan Poland

Administrative Skills

Administrative skills are abilities and personality traits that enable a person to be efficient and organized in a workplace setting.…

Knowledge Capital Jonathan Poland

Knowledge Capital

Knowledge capital refers to the resources and capabilities that enable a nation, city, organization, or individual to engage in knowledge…

Exchange Rate Risk Jonathan Poland

Exchange Rate Risk

Exchange rate risk, also known as currency risk, is the risk that changes in exchange rates will negatively impact the…

Payback Period Jonathan Poland

Payback Period

The payback period is the length of time it takes for an investment to recoup its initial cost and start…

Target Audience Jonathan Poland

Target Audience

A target audience refers to the specific group of individuals or consumers that a business or organization is trying to…

Project Management Skills Jonathan Poland

Project Management Skills

Project management skills are a combination of talents, knowledge, and experience that enable an individual to effectively plan and execute…

Is Greed Good? Jonathan Poland

Is Greed Good?

Greed is good is a paraphrased quote that originates with the 1987 film Wall Street. It is important to note…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Top-down vs Bottom-up Jonathan Poland

Top-down vs Bottom-up

Top-down and bottom-up are opposing approaches to thinking, analysis, design, decision-making, strategy, management, and communication. The top-down approach begins with…

Sales Channels Jonathan Poland

Sales Channels

A sales channel is a way of selling products or services to customers. This can include direct sales, such as…

Productivity Jonathan Poland


Productivity is a measure of how efficiently resources are used to produce goods and services. It is typically calculated by…

Coding Skills Jonathan Poland

Coding Skills

Coding skills are a combination of talents, knowledge, and experience that enable an individual to create valuable software. This can…

Business Values Jonathan Poland

Business Values

Business values are statements that reflect the ethical principles of a company. These values are intended to guide the company’s…

What is a Durable Product? Jonathan Poland

What is a Durable Product?

A durable product is a product that is designed to last for an extended period of time, typically several years…

Business Optimization Jonathan Poland

Business Optimization

Business optimization is the ongoing process of evaluating the efficiency, productivity, and performance of a business and identifying ways to…

Customer Convenience Jonathan Poland

Customer Convenience

Customer convenience refers to any aspect of the customer experience that makes it easier and more efficient for them. This…

Product Analysis Jonathan Poland

Product Analysis

Product analysis is the process of evaluating a product for the purpose of product development, review, or purchasing. This evaluation…