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Types of Pricing

Bundle Pricing
Bundle Pricing

Bundle pricing is the strategy of increasing the perceived value of your product or service by offering other products or services with it, at a combined price lower than the combined individual prices.

Economy Pricing
Economy Pricing

A method of pricing in which a low price is assigned to a product with decreased production costs. Deeper Insights An example of economy pricing is generic food sold at grocery stores.

Price Skimming
Price Skimming

Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and lowers it over time. Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and lowers it over time.

Pricing at a Premium
Pricing at a Premium

Cons of Premium Pricing. In spite of the advantages, not all businesses are equally suited to a premium pricing strategy. The following are drawbacks associated with selling goods at premium prices. Marketing. The high cost of marketing is a serious drawback associated with prestige pricing.

Pricing for Market Penetration
Pricing for Market Penetration

Market penetration pricing is a pricing strategy that sets a low initial price for a product. The goal is to quickly attract new customers based on the low cost. The strategy is most effective for increasing market share and sales volume while discouraging competition.

Psychology Pricing
Psychology Pricing

This form of psychological pricing is on the opposite side of the same coin as charm pricing. Round up the price of an item to an even number, say $50 rather than $49.50, evokes a feeling of evenness and is used mostly with luxury items.

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