Question

Create a list of at least five different pricing strategies (from the long list of pricing strategies covered in this chapter) that you might want to use and why you think each strategy might be good for your business.

Answer 1

The best five strategies which i will choose for my business.Let us discuss each of them-:

1)Premium Pricing-You can have premium pricing strategy for your business when you are introducing a new product or service in the market with better finishing and somewhat to be premium as compared to other products in the market and the product is prices it bit more than its competitors to beat them and lead to new level of market.Brand in this need to express their products and values of companies are worth to spend on your company's products and services.

2)Economy pricing Strategy-In this we set the prices of the product to least minimum in the market and make small profits only and aim to profits over the quantity and low prices will lead new people to use your brand products and services,This method is also profitable when you sell very products in very high volume and sell at low prices.

3)Price Skimming Strategy-This says setting the price of your new latest products high which eventually have very less competitors in the market to beat you,as it also give very good profits before competitors come into market with their similar products.

4)Psychological Pricing strategy-This is one of the best strategy which can be applied to over all strategies as focus on customer to buy products based on emotions we can understand it as you are selling product $99 rather than $100 as it gives least digit effect and looks cheaper than $100 to attract attention of customers.

5)Bundle Pricing Strategy-This allow company to sell multiple products of your company for less price than usual rather than paying high prices for purchasing them separately and it is best strategy to sell more products and least selling products with a discount.

For me these 5 are the best as to gain some profits and run company smoothly.