What is customary pricing?

Customary pricing (or traditional pricing) is the opposite of dynamic pricing and refers to an unchanging retail strategy where all customers within a particular segment see approximately the same price at any given time for the same product or service regardless of demand fluctuations or individual characteristics. With this kind of approach, companies use various factors, such as competition analysis, industry standards, or simple markups on costs based on past experiences. Customary pricing works best for retailers who sell homogeneous offerings and have minimal external competition while targeting all their customers in approximately the same manner (e.g., luxury items).