Dual Pricing

You own a fast food restaurant specializing in deep fried pigs ears. You have two locations. In one, you're the only food joint in the area...no competition at all. In the other location, there's a fried goat ear stand across the street.

So you use a dual pricing strategy.

In your first location, you don't have competition, which allows you to set a higher price. There, you sell the Hot Oinker Value Meal for $8.99.

At the second location, you have to worry about the fried goat place within sight of your store. Set the price too high, and people will literally go across the street to get similar food at a cheaper price. So, at that spot, you sell the Oinker Meal for $6.99.

Dual pricing. Different prices in different markets for the same product. Stay tuned for the robot managed McDonalds selling BIg Macs for $4.25 and the human managed one selling the same product for $5.80.