Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Understand the opportunities
for Internet pricing strategies.
Definition Of Pricing Strategies:
Price is the monetary value assigned to a good or service, and it is the outcome of a complicated collection of measurements, research, and comprehension, as well as the ability to take risks. Segments, willingness to pay, business dynamics, competitor behavior, trade margins, and input costs are all considerations that go into a pricing strategy.
Pricing can be done in a variety of ways:
Penetration pricing:
The price is artificially low in order to rapidly gain market share. When a new product is released, this is achieved. If the incentive period has ended and the market share goals have been met, it is expected that rates will be increased. For instance, in India, mobile phone prices, housing loans, and so on.
Economy pricing:
It's a no-frills price. The margins are razor-thin, and overheads such as marketing and advertisement are minimal. It is aimed at the mass market and has a large market share. For example, environmentally friendly laundry detergents; Nirma; and local tea producers.
Skimming strategy:
A high price is paid for a commodity before rivals allow for price reductions, after which prices can be reduced. The goal is to recover as much money as possible until the product or segment attracts more competition, lowering profits for everyone. For example, low-cost Asian players were attracted to early prices for cell phones, VCRs, and other electronic products where a few players dominated.
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