What is a pricing strategy where the mark-up varies?

Graduated recovery is a pricing strategy that allows for a varying mark-up based on different factors, such as market demand, customer segments, or purchase volume. This approach is particularly useful in industries where the cost of goods varies and where companies aim to optimize revenue by charging different prices for the same product based on specific criteria.

For instance, businesses might implement a graduated recovery strategy to charge lower prices for higher volume purchases or to attract specific customer segments, allowing for flexibility in how prices are set. This standpoints from the typical behavior in the marketplace, where consumers may respond differently to pricing based on their circumstances or perceived value, making graduated recovery effective in maximizing profit margins.

In contrast, other strategies mentioned do not allow for such variability. Fixed pricing maintains a constant price regardless of circumstances, dynamic pricing adjusts prices in real-time based on demand but does not imply a structured variation in mark-up relative to costs, and cost-plus pricing adds a consistent percentage to the cost for mark-up without variability influenced by external factors.