For-Profit Software

by EndVertex

Notes

Flex Pricing

• [i] Flexible pricing, often referred to as ‘flexprice’, describes a pricing strategy where the prices of goods and services are not fixed and can change based on market conditions, demand, time of purchase, and customer characteristics. This approach allows businesses to adjust their prices dynamically to meet the current market situation and maximize revenue.

This pricing strategy can be extremely predatory as businesses may market their product as “pay for what you use” but will mark up the overall price the customer will be paying.

Captive Market

• [n] Wikipedia
• [”] A captive market is a market where the potential consumers face a severely limited number of competitive suppliers; their only choices are to purchase what is available or to make no purchase at all. The term therefore applies to any market where there is a monopoly or oligopoly.