Pricing Strategies
- Created by: Ray22
- Created on: 19-05-13 18:23
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- Pricing Strategies
- Penetration Pricing
- Initially starting with a low price to attract customers
- Competition-based Pricing
- Sets the price below competitors - gaining additional sales
- Cost Plus Pricing
- % mark up - direct cost plus an amount to cover indirect costs.
- Skimming
- Starting off with a high which may eventually reduce.
- Market-based Pricing
- 'Going-rate pricing'
- i.e. Supply and Demand set the price in the Housing market
- 'Going-rate pricing'
- Premium Pricing/ Prestige Pricing
- High Price set to indicate an image of high quality
- Psychological Pricing
- Setting prices that sound less than it really is
- i.e. iPad Air was originally priced £529.99
- Setting prices that sound less than it really is
- Promotional Pricing
- BOGOF, Price reductions, 3 for 2, Loss leader
- Price Discrimination
- Charging different prices for the same product/service within different markets.
- i.e. Plane tickets rise the closer to the date it gets
- Charging different prices for the same product/service within different markets.
- Predatory Pricing
- Pricing so low to undercut new entrants and convince them to sell or leave the market.
- Penetration Pricing
- Charging different prices for the same product/service within different markets.
- i.e. Plane tickets rise the closer to the date it gets
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