Tag Archives: Pricing Strategy
Price Skimming Strategy: Advantages and Disadvantages
While launching a new product, your business has the option to choose from many pricing strategies. Unlike other product pricing strategies, the price skimming strategy emphasizes maximizing revenue and profits in the short run by setting the initial price of the new product high. You have to lower prices gradually as the demand for the […]
What is Premium Pricing
While determining the price of a product, the decision-makers evaluate the pros and cons of several pricing strategies. Some decision-makers opt for the penetration pricing strategy to create demand and acquire a market share of offering the product or service at a lower price. At the same time, some decision-makers opt for premium pricing/prestige pricing/image […]
What is Penetration Pricing?
Before launching a new product or service, the businesses use a variety of pricing strategies and methods to determine its selling price. Some pricing strategies focus on recovering the cost of production, while others help businesses to generate more revenue and profits. Unlike other pricing strategies, penetration pricing strategy helps businesses to penetrate a new […]
What is Cost-Plus Pricing and When to Use It?
While determining the price of a product or service, you can consider several types of pricing strategies. Some pricing strategies help you to increase the demand for the product or service, while others make it easier for you to generate more profit. Unlike other pricing strategies, cost-plus pricing or markup pricing helps you to generate […]
Types of Pricing Strategies: A Quick Guide
Your business can make a product or service accessible to more customers by offering it at a lower price. But your business cannot maximize shareholders’ value and profits without offering the product or service at a higher price. Hence, you need to implement a tiered pricing strategy that maintains a balance between increasing demand for […]