What is Price Skimming? Price skimming is a pricing strategy where a company initially sets the highest possible price that early customers are willing to pay for a new product. Over time, as demand from the initial customer segment is met and competition enters the market, the company gradually reduces the price to attract more … Read more
What is Product Life Cycle Pricing? Product life cycle pricing is how companies set prices for products as they grow and change. Imagine a product’s life in different stages: baby, kid, teenager, and grown-up. Each stage needs different care. Same with products. First, there’s the baby stage (introduction stage), where the product is new and … Read more
What is Product Mix Pricing? A product mix pricing strategy focuses on setting prices for products within a broader range. It’s about tailoring prices to each product’s role within that mix. This approach considers how products interact and aims to maximize overall profit across the entire product range. Pricing holds immense importance in marketing strategies, … Read more
What is Odd Pricing? Odd Pricing is a pricing strategy that sets product prices in odd numbers. Instead of neat, round numbers like $10, it’s $9.99 or $1.97. Why the fuss? Well, our brains focus on that first number. So, when we see $9.99, our minds round it down to $9, making it seem way … Read more
What is Psychological Pricing? Psychological pricing involves setting prices slightly below whole numbers to trigger a favorable reaction in customers. By presenting prices like $3.99 instead of $4, the aim is to create the perception of a lower cost. This strategy taps into how our minds process numbers, focusing more on the leftmost digits and … Read more
What is Promotional Pricing? Promotional pricing is a savvy sales tactic where companies briefly drop the regular price of a product or service to spark sales. These deals, often advertised through campaigns, aim to attract both existing customers and new buyers. These reduced prices help companies swiftly move stock, cutting storage expenses and avoiding losses … Read more
What is Geographical Pricing? Geographical pricing is a strategic business approach where the sale price of a product or service is adjusted based on the buyer’s location. This pricing strategy considers factors such as shipping costs, taxes, and manufacturing expenses in specific regions. The goal is to optimize revenue by tailoring prices to local market … Read more