> Marketing > Pricing
How do you decide what price you should charge for your products and
services? A simple way would seem to be just to add something to what it costs
you. Yet what customers will pay is often unrelated to your costs. Pricing, can
be something of a difficult art, yet is also a science. Here's condensed wisdom
on how to decide what price to charge.
- Auctions: Letting the customer set the price.
- Base Point Pricing: Base price plus shipping.
- Basic-Plus Pricing: Fixed for basic service, then charge for extras.
- Benefit Pricing: Charge by what it gives.
- Bounded Pricing: Don't go above or
below key prices.
- Brand Pricing: Price to support brand values.
- Bundle Pricing: Price for a group of related items.
- Captive Product Pricing: Charge more for the add-ons, service, etc.
- Charm Pricing: see The 99 Effect and The 95 Effect.
- Competitive Pricing: Price based on competitor prices.
- Competitor Index Pricing:
Price based on calculated index.
- Confusion Pricing: Keep varying the variables.
- Contrast Pricing: Price relative to other products.
- Cost-Plus Pricing: The oldest method, but seldom the best.
- Discountable Pricing: Price in expectation of discounts.
- Dynamic Pricing: Changing with each sale (particularly online).
- Everest Pricing: Use odd amounts.
- Expectation Pricing: Price by customer expectation.
- Fixed Pricing: Standard price, never with discounting.
- Freemium Pricing: Basic free, charge for the rest.
- Go Away Pricing: Price high to put off
- Growth Pricing: Pricing to capture a growing market.
- Hidden Pricing: Move the costs
- Left-side Pricing: Seen first, seems
- License Pricing: Pay to borrow or use for period.
- Lifetime Pricing: Price for the cost of ownership over the life of the
- Loss-leader Pricing: Sell below cost for strategic effect.
- Low Start Pricing: Cheap or free for first period.
- Market Pricing: Price based on market norms.
- Multi-brand Pricing: Same products, different brands, different prices.
- Old-product Pricing: How to price
the previous version.
- Optional Extra Pricing: Price with additional nice stuff.
- Penetration Pricing: Price to gain market share.
- Profit Pricing: Price to maximize profit.
- Predatory Pricing: Price low to eliminate competitors, then price high.
- Premium Pricing: Price up for higher profits a smaller segment.
- Price Bracketing: Have high, medium and low priced items.
- Price Matching: Meet or beat comparable product prices.
- Price-point Pricing: Price for segments who shop within a band.
- Price Skimming: Lowering price to match demand curve.
- Private Pricing: Only the customer knows what they paid.
- Promotional Pricing: Lower price to get attention.
- Rate of Return Pricing: Price based on percentage return.
- Real-Time Pricing: Change the price with each customer encounter.
- Seat Pricing: When you have limited seats
- Separated Price: Put price away from product.
- Share Price Pricing: Designed to maximize share price.
- Signal Pricing: Send messages with the price.
- Target Pricing: Price to achieve certain targets.
- Three Tier Pricing: Cheap,
Standard and Luxury.
- Total Profit Pricing: Understand price for maximum profit.
- Transfer Pricing: Priced to 'sell' within the enterprise.
- Usage Pricing: Charge by use.
- Value Pricing: Charge based on the value delivered.
- Zone Pricing: Price by geographic area.
The Psychology of Price
More to come...