pricing

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  • Created by: irena4567
  • Created on: 12-12-15 16:25

Ways to set price=prcing strategies 

1.Price skimming/creaming 

A high price at the start of launch overtime price goes down.(How can a business charge a high at the start ?)

Demand is always high for those products that you cant get elsewhere  because there completely new therfore businesses charge very high price becuase they know demand is high .Therfore profits are going to be freally high at the start .

2.price penetration 

Low price at launch , overtime price goes up .They do this to gain customer

Many new businesses that start up use this to get sales and to win customers as they are new in the area ,however once they got customers the push prices back up .

3.psychological pricing 

The price is rounded down to make it look cheaper and also end in £0.99

Businesses use this because In the customers mind when you round the price down its slighlty cheaper than rounding up.

4.Specail offers 

E.G bug now pay later ;buy

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