Pricing Strategies
Disciplines
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Pricing Strategies
Setting the price for the products and services you sell is remarkably
difficult. Here are some strategies to help you decide how you will complete this
task.
- 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
unwanted custom.
- Growth Pricing: Pricing to capture a growing market.
- Hidden Pricing: Move the costs
elsewhere.
- Left-side Pricing: Seen first, seems
less.
- License Pricing: Pay to borrow or use for period.
- Lifetime Pricing: Price for the cost of ownership over the life of the
product.
- 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
to sell.
- 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.
See also
The Product Lifecycle
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