![]() Cost-plus pricing strategyĪ cost-plus pricing strategy focuses on the cost of producing individual items. If a company exists in a highly saturated market with many direct competitors, a competitive pricing strategy can help the company appeal to customers who are primarily concerned with finding the lowest price.Įxample competitive pricing strategy: A company that sells cell phone accessories sets intentionally low prices to help its products stand out in that market. A competitive pricing strategy uses other company's prices as a standard. Here is an overview of eight common pricing strategies, with examples of each:Ī company with a competitive pricing strategy chooses its prices by looking at the current market rate or going rate of a certain product. The pricing strategy that is best for a company depends on its individual strategic goals. Related: The Value of Increasing Your Business Vocabulary Types of pricing strategies When choosing a pricing strategy, companies have to consider a number of important factors, including the quality of their products, the manufacturing costs and the market demand. A good pricing strategy involves setting prices that suit the value of products while also turning a profit.Ī company's goal when it comes to pricing strategies is usually to set unit prices that appeal to customers and are higher than the product's production cost. ![]() ![]() ![]() View more jobs on Indeed View More What is a pricing strategy?Ī pricing strategy refers to the method companies use to decide which price to set for its products. ![]()
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