Chapter 82. Nonlinear Pricing
Questions answered in this chapter:
What is linear pricing?
What is nonlinear pricing?
What is bundling, and how can it increase profitability?
How can I find a profit-maximizing nonlinear pricing plan?
Answers to This Chapter’s Questions
What is linear pricing?
In Chapter 80, and Chapter 81, I show how to determine a profit-maximizing price for a product. In those chapters’ examples, however, I make the implicit assumption that no matter how many units a customer purchases, the customer is charged the same amount per unit. This model is known as linear pricing because the cost of buying x units is a straight line function of x; namely, cost of x units=(unit price)*x. You will see in this chapter that nonlinear pricing
Get Microsoft® Excel® 2010: Data Analysis and Business Modeling now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.