9 types of pricing. Part 1.

Setting a price for any product is a very important part of work. Here are 9 pricing strategies from which you can choose the one most suitable for your business.

Market penetration strategy

What it is? At the beginning you set a minimal price for your goods to attract more new customers, and as the time passes, you raise the price.

✅ A good way to interest an audience of competitive shops.

❌ Money loses at the stage of entering the market, losing loyalty of those who was attracted by a low price only.

Skimming What it is? At the beginning you set the maximum price for your product, and then gradually reduce the price.

✅ Suitable for big brands with loyal customers who are ready to pay a lot of money for newest products. ❌ High prices scare away potential customers, so you have to invest a lot in marketing and promotion.

Competitive pricing What it is? You set a price for your goods basing on the prices of your competitors.

✅ You don't scare away clients because of high prices ❌ You don't get extra revenue; you need to investigate which competitors exactly affect your customer flow.

Assortment pricing What it is? You divide your assortment into different pricing categories. Goods with better technical characteristics cost more.

✅  You get income from both cheap and expensive goods as technically your products compete with each other, not with products of your competitors. ❌ You need to have quite a wide assortment of goods.

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