Product Line Pricing
It is a strategy where a company sets different prices for different products within the same product line. It’s like having a menu with various dishes, and each dish has its own price. Imagine you’re at a restaurant, and they offer different types of burgers. Each burger has its own price, even though they all belong to the same burger category. Some burgers might have premium ingredients and extra toppings, so they are priced higher. On the other hand, there might be basic burgers with fewer toppings or simpler ingredients, and they are priced lower. The purpose of product line pricing is to cater to different customer preferences and budgets. It allows customers to choose a product that aligns with their needs and willingness to pay. Some customers might be willing to spend more for a burger with fancy ingredients, while others might prefer a more affordable option. Product line pricing also helps companies maximise their overall revenue. By offering a range of prices within a product line, they can capture different segments of the market and attract a broader customer base. It gives customers options and increases the chances of making a sale.
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