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?

In Chapter 69 and Chapter 70, I showed how to determine a profit-maximizing price for a product. We made the implicit assumption, however, 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* (cost of x units *= (unit price)*x)*. We will see in this chapter that *nonlinear pricing* can often greatly increase a company’s profit.

A nonlinear pricing scheme simply ...

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