The five pricing strategies are:1. Cost-plus pricing2. Competitive pricing3. Value-based pricing4. Product bundling5. Penetration pricing
What is a pricing objective?
Pricing objectives are essential to consider when pinning down an ideal price point. You don’t want to choose what you charge for a product or service at random. Without an objective, you're throwing prices at the wall and seeing what sticks.
Why should you use pricing strategies?
When used correctly, pricing strategies can help you increase sales and profits without having to spend more on marketing or lower your prices so much that margins are squeezed. In other words, it’s a way to grow your business without sacrificing profitability.
