Pricing tactics

There are various pricing tactics including:

1. Cost plus pricing: This pricing tactic involves setting the price of a product by adding a markup to the cost of producing it. This allows businesses to cover their costs and make a profit, but may not take into account market demand or competition.
2. Penetration pricing: This pricing tactic involves setting a low initial price for a product in order to quickly gain market share and compete with established competitors. The goal is to attract customers with a low price and then gradually increase the price over time.
3. Perceived quality pricing: This pricing tactic involves setting a higher price for a product based on the perceived value or quality of the product. The goal is to create an image of exclusivity or luxury and appeal to customers willing to pay a premium for a high-quality product.
4. Price discrimination: This pricing tactic involves charging different prices for the same product or service to different customer groups. This can be based on factors such as location, quantity purchased, or type of customer.
5. Going rate pricing: This pricing tactic involves setting the price of a product based on the prices of similar products offered by competitors. The goal is to remain competitive and avoid pricing too high or too low relative to the market.
6. Price skimming: This pricing tactic involves setting a high initial price for a new product and gradually lowering the price over time as the product becomes more widely available and competition increases.
7. Loss leaders: This pricing tactic involves selling a product at a price lower than the cost of producing it in order to attract customers and sell other products at a profit.
8. Captive product pricing: This pricing tactic involves setting a higher price for a product that is necessary for the use of another product, such as ink cartridges for a printer. The goal is to increase the overall price of the product bundle and increase profits.