Economy Pricing Used by a wide range of businesses including generic food suppliers and discount retailers, economy pricing aims to attract the most price-conscious of consumers. With this strategy, businesses minimize the costs associated with marketing and production in order to keep product prices down.
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. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment.
A premium pricing strategy has the advantages of producing higher profit margins, creating tougher barriers to entry for competitors, and increasing the brand's value for all the company's products. Premium Pricing Examples. Rolex is a good example of a company using a premium pricing strategy to great success.
It’s simple; use psychological pricing. Psychological pricing is a pricing/marketing strategy based on the theory that certain prices have a bigger psychological impact on consumers than others. Below are five pricing strategies entrepreneurs can adopt: 1. 'Charm pricing': Reduce the left digits by one.