Price Strategy Examples

It is however used when there is a considerable competitive advantage and the marketer or the business is safe to charge a comparatively higher price. Premium pricing is ideal for small companies that sell unique services or goods.

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Generally pricing strategies include the following five strategies.

Price strategy examples. With dollar shave club customers make a one time purchase for a razor. With this pricing strategy marketers set prices higher than their rivals or competitors. Then every month they purchase new razor blades to replace the existing one on the head of the razor.

Combining discounted products and regular priced products in one location will draw customers into the business for a discount but indirectly encourages impulse purchasing on regular priced products. For example one could use a price skimming strategy with a flat rate model. Let s take a few pricing strategies examples when a few fruits are not available in a country they are imported from another country these fruits are exotic fruits they are also scarce this increases their value in the country they are imported to scarcity the shipping cost of the imported product along with its quality increase its price where as it is much cheaper where it is originally grown.

Depending on the industry in which a firm operates there are different pricing strategies to implement such as penetration pricing premium pricing discount pricing and competitive pricing. Value based pricing setting a price based on how much the customer believes what you re selling is worth. The technology automobile and clothing sectors are industries where the price skimming strategy works really well.

A perfect example of a captive pricing strategy is seen with a company like dollar shave club. Candy crush saga is a great example of freemium pricing strategy where the game is provided for free but a price is levied if you want more lives to play. Cost plus pricing simply calculating your costs and adding a mark up.

Price skimming setting a high price and lowering it as the market evolves. If you re a relatively new business you may want to consider pricing for optimum market penetration. Let s look at an example.

Pay what you want pay what you want is a pricing strategy where the power of deciding the price of a product is given to the buyers who pay their desired amounts for a product which could even be zero. This means that you initially sell your product or service at a low introductory price to attract new customers then raise prices one you ve secured your share in the market. B2b and contract based are examples of sectors the use of price skimming strategy does not bring any benefit to both the business as well as the consumer.

Competitive pricing setting a price based on what the competition charges. Three companies could offer similar products but use completely different pricing models and strategies. For example this is one of the pricing strategy examples that works best for businesses like a grocery or convenient store that offers a variety of products at an inexpensive rate.

Another could use a tiered pricing model with a penetration pricing strategy and the third could use a freemium strategy with a pay as you go model.

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