LEARNING HOW TO PRICE YOUR PRODUCTS
August 3rd at 9:11am Published by firstdownadmin
These are the four basic strategies, variations of which are used in the industry. Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item
There are four main aspects of financial modeling, and pricing is just one of them. The others are product, promotion, and place. Pricing is a very important aspect of marketing. Wholesale businesses also need to select the pricing strategies that will enable them to grow and expand in the long-term
Markup pricing or cost-plus pricing is a pricing strategy where the price of a product or service is calculated by adding together the cost of the products and a percentage of it as a markup. The percentage or markup is decided by the company usually fixed at the required rate of return.
Here are ten different pricing strategies that you should consider as a small business owner.
- Pricing for market penetration.
- Economy pricing.
- Pricing at a premium.
- Price skimming.
- Psychological pricing.
- Bundle pricing.
- Geographical pricing.
- Promotional pricing.