These pricing strategies align with the overall business strategy of a company in various ways. Cost-Plus Pricing is used when a company wants to ensure they cover their costs and achieve a certain profit margin. Competitive Pricing is used when a company wants to position itself in line with its competitors. Value-based Pricing is used when a company believes their product or service has unique features or benefits that customers are willing to pay more for. Price Skimming is used when a company wants to maximize profits in the early stages of a product's life cycle and then decrease the price to attract more price-sensitive customers. Penetration Pricing is used when a company wants to enter a competitive market by offering lower prices initially and then increasing them over time.
Take the most advantageous pricing approach to increase profitability of your organization. Use our...
Download template