Most Common Pricing Strategies

Cost-Plus Pricing

Setting prices by adding a markup to the cost of producing or purchasing a product.

Competitive Pricing

Pricing products in line with or slightly below competitors' prices.

Value-Based Pricing

Setting prices based on the perceived value to the customer rather than the cost of production.

Skimming Pricing

Initially setting a high price for a new product and gradually lowering it as competition increases.

Penetration Pricing

Offering a low initial price for a new product to gain market share quickly.

Dynamic Pricing

Adjusting prices in real-time based on demand, competition, or other market factors.

Bundle Pricing

Selling multiple products or services as a package for a lower price than if purchased individually.

Price Discrimination

Charging different prices to different customer segments based on their willingness to pay.

Psychological Pricing

Using pricing tactics that play on consumers' psychology, such as setting prices at $9.99 instead of $10.

Loss Leader Pricing

Offering a product at a loss or very low margin to attract customers who will make additional purchases.

Promotional Pricing

Temporarily reducing prices to boost sales during promotions or special events.

Geographic Pricing

Adjusting prices based on the location of the customer or the cost of doing business in different regions.

Time-Based Pricing

Changing prices based on the time of day, week, season, or other time-related factors.

Anchor Pricing

Setting a high initial price to create a reference point for customers, making subsequent lower prices appear more attractive.

Subscription Pricing

Charging customers on a recurring basis for access to a product or service.

Freemium Pricing

Offering a basic version of a product for free and charging for premium features or upgrades.

Value Bundling

Combining complementary products or services and offering them at a discounted price.

EDLP (Everyday Low Pricing)

Maintaining a consistently low price for products rather than frequent discounts.

Odd-Even Pricing

Using prices that end in odd numbers (e.g., $9.99) to create the perception of a lower cost.

Cost Leadership Pricing

Competing on price by minimizing costs and passing the savings on to customers.

Price War

Engaging in a competitive battle by continually lowering prices to gain market share.

Markup Pricing

Setting prices by adding a fixed percentage markup to the cost of goods.

Customized Pricing

Tailoring prices to individual customers based on their purchasing history or behavior.