Opaque Pricing is a type of pricing model used primarily by retailers which allows customers to purchase products at a lower than market price without knowing the details of the minimum or maximum discounts until after a purchase is made. With this type of pricing approach, discounts vary based on the individual customer’s purchase history or buying behavior, or even special discounts available only through the retailer’s loyalty program.

Opaque pricing is becoming an increasingly popular way for retailers to encourage customers to purchase more frequently or in higher quantities, as the lower prices can entice people to make a purchase they may not have otherwise made. In addition, this type of pricing model is also beneficial to the retailer, as it allows them to leverage their data base to strategically build discounts to drive increased sales. It is also a great way to build customer loyalty through exclusive discounts, by providing customers with chances to save considerably more money on the items they love.

For example, a retailer may offer customers a certain percentage off prices when they purchase a certain amount of items. Or they may offer special discounts to customers who shop often, giving them additional incentives to continue to return to the retailer. This type of discounting can be especially appealing for products that may be hard to come across or are typically expensive, as the discounts available through opaque pricing models may offer a chance to save significantly.

Overall, opaque pricing can be a great way to encourage customers to purchase more frequently or at higher quantities, while also providing them with unique discounts unavailable elsewhere. By leveraging data from customers and providing personalized discounts, retailers can maximize sales opportunities with this pricing model.