Some examples of successful pricing strategies employed by large corporations include value-based pricing, cost-plus pricing, and dynamic pricing. Value-based pricing is when a company sets its prices based on the perceived value of a product or service to the customer rather than on the cost of the product or the prices competitors are charging. An example of this is Starbucks, which uses research and customer analysis data to determine targeted price spikes. Cost-plus pricing is when a company adds a percentage to costs in order to determine the price. Dynamic pricing is when prices are adjusted in response to market conditions, such as demand.
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Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...
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In 2020, Starbucks increased their prices by 1% (yet again). Experts from Price Intelligently analyzed the corporate giant's pricing strategy and concluded that "Starbucks is a master of employing value based pricing to maximize profits." According to the analysts, Starbucks does a great job using research and customer analysis data to determine targeted price spikes.
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