6 common pricing strategies:
- Price skimming: setting a high price for your product and then gradually reducing the price over time.
- Competition-based pricing: evaluating the prices set by market competitors and placing your price either slightly higher or lower than the competition.
- Economy pricing: setting prices that target buyers who seek a low price or bargain.
- Premium pricing: setting a high price tag on your items. This strategy requires ensuring that the product or service itself is of high quality before you give it a ‘luxury’ label.
- Value-based pricing: setting a price based on what a customer is willing to pay – what they believe your brand and your product are worth.
- Cost-plus pricing: this method is solely based on what the cost of producing your product is and then adding a markup so that you aren’t selling at a loss.
PRICING STRATEGIES IN PLC (Product lifecycle)
Introduction- Charge cost-plus
Growth- Price to penetrate the market
Maturity- Price to match or beat competitors
Decline- Cut price