What is the term for a pricing method where the markup varies, especially on higher priced caskets?

The term for a pricing method where the markup varies, especially on higher priced caskets, is graduated recovery. This method is designed to apply varying multipliers or percentages to the costs of different products rather than a flat percentage across the board. The idea is to use a tiered approach where the markup percentage increases with the price of the casket. This practice reflects the perception that more expensive items are often viewed as premium products and, therefore, can bear a higher markup relative to their cost.

This strategy allows funeral homes a way to ensure they are adequately compensated for the higher-quality products they offer while still remaining competitive in the marketplace. Utilizing graduated recovery can help accommodate the differing consumer perceptions of value associated with various price points, which can enhance overall sales and optimize profit margins.

In contrast, fixed markup applies a constant percentage across all items regardless of their price, flat rate pricing indicates a single uniform price for specific services or products, and dynamic pricing involves adjusting prices based on demand, market conditions, or external factors, rather than the inherent value or cost of the caskets themselves.