Friday, 21 October 2016

Pricing Strategies

Before you put the price for any product you should know the different types of Pricing Strategies.
Today I will talk about some of these types.
1-SKIMMING PRICE STRATEGY
A pricing strategy in which a new product is priced high to make optimum profit while there is little competition .

2-PENETRATION STRATEGY 
A pricing strategy in which a product is priced low to attract more customers and discourage competitors.

3-EVERY DAY LOW PRICING (EDLP)
A pricing strategy where prices are set lower than others and don't have many special sales.

4-HIGH-LOW PRICING STRATEGY
This strategy has regular prices that are higher than at stores using (EDLP) but they have many special sales in which the prices are lower.

5-BUNDLING STRATEGY
Grouping two or more products together and pricing them as a unit.

6-PSYCHOLOGICAL PRICING (ODD PRICING
pricing goods and services at price points that make them appear less expensive than they are.

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