Fri. Sep 30th, 2022

PRICING STRATEGIES

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

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