Ask HN: Do you use a pricing strategy based on a geolocation?

I'm interested in a feedback for a geolocation based pricing strategy for an online e-commerce application. Does anybody use that already? What do you think about the strategy?

E.g. I can market some items on the highest price for customers from large cities but give a discount for customers from small to mid-size cities. (I can generate more cases here...)

What do you think about this?