Zone pricing is a pricing strategy where a company sets different prices for the same product or service based on geographic location or customer region.

Instead of offering a flat rate to all customers, businesses group locations into “zones” and assign pricing tiers based on factors like logistics costs, market demand, taxes, or local purchasing power.

Zone pricing is commonly used in:

• SaaS (adapting pricing to regional markets or currencies)
• E-commerce (shipping costs vary by delivery region)
• Telecom, logistics, and subscription services

Example:

A SaaS platform charges $50/month in the U.S., but offers a $30/month version for customers in Southeast Asia to account for regional income differences and market dynamics.