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Charge Customers Before They Consume

Reviewed by expert Scientifically proven

Let customer pay before the use the product.

  1. It's more likely that you get paid, because they literally pay before they start using it.
  2. Customers will be happier. While prepaying, they can anticipate the positive outcomes. If they have already experienced the positive results, there's nothing that will ease the pain of paying (Prelec & Lowenstein, 1998).

If you charge customers every month, charge them at the beginning of the month.

Table of contents:
  1. Definition
  2. What is the charge customers before they consume pricing tactic?
    1. How to apply
  3. Conclusion


The technique of determining prices based on the perceived value of a company's goods or services is known as customer-driven pricing. This model is based on the idea that a consumer will pay a given price if the value supplied exceeds the cost.

What is the charge customers before they consume pricing tactic?

An effective pricing tactic that many businesses use is charging customers before they consume. This can be done in various ways such as requiring a deposit, setting up a subscription, or using a pay-as-you-go model. This type of pricing encourages customers to be more thoughtful about their purchase and to only buy what they need. It also helps businesses to better predict their revenue.

How to apply

Customers should pay for your goods before utilizing them. For starters, you're more likely to get compensated. Always a pleasure. Customers will be pleased, too. They might look forward to the rewards while prepaying. Nothing can make the agony of paying those benefits disappear if they have already used them. If you charge consumers every month, do it at the start of the month.

Managers must make prudent judgments about when and how to charge for products and services since the price substantially impacts consumption.


The pricing technique may also be used in different geographical marketplaces where supply and demand dynamics favor the supplier. The consumer is ready to pay more than a customer in another location.

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