Product Mix Pricing Strategies
What is product mix pricing strategies with example?
Product mix pricing considers how products interact and influence each other’s prices. Examples include offering a range of prices within a product line (like expensive vs. budget phones) or bundling products for a discount (like a fast food combo meal). This helps companies reach more customers and boost profits.
What are the 5 Pricing Strategies?
There are 5 common pricing strategies, which include Product Line Pricing; 1. Cost-plus pricing, which adds a markup to your production cost. 2. Competitive pricing, which sets your price based on what similar businesses charge. 3. Value-based pricing, which charges what customers believe the product is worth. 4. Price skimming, which starts high and lowers over time for new products. 5. Penetration pricing, which starts low to enter a competitive market and can increase later.
What is the Difference Between Product Line and Product Mix?
Product line is a group of similar products offered by a company, like different phone models. Product mix is the entire range of those product lines that a company offers, encompassing all their different products. So, the product line is a part of the bigger picture, the product mix.
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