Dual Pricing

One price does not always fit every market, because freight, import duties, local support and channel fees may make a foreign sale more costly than a domestic sale, and demand can differ too, as customers may value faster service or have fewer alternatives in one place. Separate prices may reach a price-sensitive segment but can confuse customers.

First define the comparison carefully by asking whether the goods are identical, including warranty and service, and whether quoted prices are in the same currency and inclusive of the same taxes and delivery. Compare net revenue and contribution by market, not just list prices, since a distributor discount may reduce the producer's realised price even when the final consumer price is higher.

Build a cost floor for each market that includes direct production or purchase cost, shipping, duties where relevant, local selling costs and expected returns, then test demand and competitive positioning rather than adding the same markup everywhere. Exchange-rate changes can narrow or reverse a price gap, so identify who bears currency risk, and consider arbitrage when goods can move between markets.

Distinguish independent pricing from collusion, because a company can choose its own prices but competitors agreeing to divide customers or fix prices is a different issue, and predatory or dumping concerns may arise in certain contexts with legal tests that vary by jurisdiction, product and evidence. The existence of two prices alone does not prove a violation, so obtain local advice before adopting a policy that may affect competition or protected customers.

Fairness matters commercially even if a structure is permitted, since a transparent student or resident discount may be understood as a benefit to a defined group while an unexplained surcharge or misleadingly hidden fee can damage trust. Make eligibility and final payable price clear before purchase, and train staff to apply rules consistently and give them a way to handle genuine exceptions.

Review results over time by segmenting revenue, contribution, conversion, complaints and refunds, because a lower price may bring new buyers but may also train existing customers to wait for discounts. A high price in a small market may raise margin per sale while losing volume and dealer support, so document the rationale for the two prices.