5 Common Pricing Strategies
BDC.ca. (n.d.). The 5 most common pricing strategies . BDC.Ca. Retrieved January 15, 2022, from https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/pricing-5-common-strategies “How much the customer is willing to pay for the product has very little to do with cost and has very much to do with how much they value the product or service they’re buying,” says Eric Dolansky, Associate Professor of Marketing at Brock University in St. Catharines, Ont. 5 Strategies Cost-plus pricing —simply calculating your costs and adding a mark-up Competitive pricing—setting a price based on what the competition charges Value-based pricing—setting a price based on how much the customer believes what you’re selling is worth Price skimming—setting a high price and lowering it as the market evolves Penetration pricing—setting a low price to enter a competitive market and raising it later How do you arrive at a value-based price? Dolansky provides the following advic...