What distinguishes fixed pricing from variable pricing?

Fixed pricing is characterized by its consistency and stability. It remains constant regardless of market fluctuations or external factors such as demand or competition. Businesses that implement fixed pricing establish a set price for their products or services, which does not change over time or in response to varying conditions in the market. This approach can simplify the purchasing process for customers, as they can expect the same price whenever they make a purchase, leading to predictability in sales and inventory management.

In contrast, variable pricing can change based on market conditions, customer demand, or other external factors. Therefore, fixed pricing provides a straightforward pricing strategy that can be advantageous for certain business models, especially those that require predictability in their pricing structure.