Pricing strategies

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A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Businesses may benefit from lowering or raising prices, depending on the needs and behaviors of customers and clients in the particular market. Finding the right pricing strategy is an important element in running a successful business.^[1]

Contents

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• 1Models of pricing
  • 1.1Absorption pricing
  • 1.2Contribution margin-based pricing
  • 1.3Creaming or skimming
  • 1.4Decoy pricing
  • 1.5Freemium
  • 1.6High-low pricing
  • 1.7Limit pricing
  • 1.8Loss leader
  • 1.9Marginal-cost pricing
  • 1.10Market-oriented pricing
  • 1.11Odd pricing
  • 1.12Pay what you want
  • 1.13Penetration pricing
  • 1.14Predatory pricing
  • 1.15Premium decoy pricing
  • 1.16Premium pricing
  • 1.17Price discrimination
  • 1.18Price leadership
  • 1.19Psychological pricing
  • 1.20Target pricing business
  • 1.21Time-based pricing
  • 1.22Value-based pricing
  • 1.23Other pricing approaches
• 2Nine laws of price sensitivity and consumer psychology
• 3References