Group pricing

One of the new pricing practice that has emerged on account of increased use of Internet. Internet is facilitating a method whereby consumers and business buyers can join groups to buy a product at a lower price. Here, consumers can go to a relevant website that offers a group price mechanism. If the consumer finds a desired product, he or she can see the current pool price, which is the function of the number of orders received so far. The web page may also indicate that if (say) three more orders were to come, the price would fall by a specified amount.