PRICING

STRATEGIES
 01
Market-skimming
pricing
A pricing approach in which the producer sets a high introductory
price to attract buyers with a strong desire for the product and the
resources to buy it, and then gradually reduces the price to attract
the next and subsequent layers of the market.

Skim pricing, also known as price skimming, is a pricing strategy that

sets new product prices high and subsequently lowers them as
competitors enter the market. Skim pricing is the opposite of
penetration pricing, which prices newly launched products low to
build a big customer base at the outset.

For example: Electronic products – take the Apple iPhone, for

example – often utilize a price skimming strategy during the initial
launch period. Then, after competitors launch rival products, i.e., the
Samsung Galaxy, the price of the product drops so that the product
retains a competitive advantage.
 02
Market-penetration
pricing
Penetration pricing is a marketing strategy used by businesses to attract
customers to a new product or service by offering a lower price during its
initial offering. The lower price helps a new product or service penetrate the
market and attract customers away from competitors. Market penetration
pricing relies on the strategy of using low prices initially to make a wide
number of customers aware of a new product.

A price penetration strategy aims to entice customers to try a new product

and build market share with the hope of keeping the new customers once
prices rise back to normal levels. Penetration pricing examples include an
online news website offering one month free for a subscription-based
service or a bank offering a free checking account for six months.

Netflix is the perfect example of penetration pricing done right. We have

often heard people complaining about their Netflix subscription prices
going up or their one month of free subscription ending. Nevertheless,
despite occasional grumbling, people are completely fine with paying the
higher subscriptions for the unending flow of good media content. Today,
Netflix is a market leader constituting 51% of streaming subscriptions in the
United States. Other OTT platforms are following suit by deploying
penetration pricing to attract new customers.
 03
Product-line pricing
Product line pricing involves the separation of goods and services
into cost categories in order to create various perceived quality
levels in the minds of consumers. You might also hear product line
pricing referred to as price lining, but they refer to the same practice.

The goal of product line pricing is to maximize profits by positioning

new products with the highest number of features or with the most
cutting-edge individual features at the highest price point. At the
same time, you’ll be keeping a base product (i.e., one with fewer or
older features with lower performance expectations) on sale as a
lower-priced alternative.

Nike Inc. (NKE) has product lines for various sports, such as track and
field, basketball, and soccer. The company's product lines include
footwear, clothing, and equipment. The various product lines for
Starbucks Corporation (SBUX) include coffee, ice cream, and
drinkware.
 04
Optional product
pricing
The Optional product pricing strategy is based on offering customers
the option to buy additional products or services along with the main
product. In other words, the company offers a range of
complementary features or products to the main product, and the
customer has the option to buy them or not.

For example, an automobile manufacturer may offer additional

options such as leather seats, satellite navigation systems, and
backup cameras, among others. These additional features are not
necessary for the car to function, but they offer a more comfortable
and convenient driving experience. The manufacturer may set a
higher price for the car with all these additional options, or allow
customers to choose and pay only for the options they want.

The Optional product pricing strategy can be effective in increasing

sales and revenue, as customers can customize their purchases and
get more value from the product experience. In addition, companies
can achieve higher profit margins by selling complementary
products at a higher price than the production cost.
 05
Captive product
pricing
The Captive product pricing strategy is based on offering a
main product at a relatively low price, or even below cost, in
order to attract customers, and then charging higher prices
for complementary or accessory products that are necessary
to fully utilize or enjoy the main product.

In other words, the captive pricing strategy involves selling a

product at a lower price to attract customers and then
making profits by selling complementary products that are
needed to use the main product.

An example of this strategy is the printer and ink cartridge

market. Printer manufacturers often sell their printers at a
relatively low price, or even below cost, knowing that they can
recoup those losses by selling ink cartridges at higher prices.
Customers who buy a printer have to buy the ink cartridges
from the same manufacturer in order to use the printer, and
manufacturers can set higher prices for ink cartridges because
of this customer dependence.
 06
By product
pricing
The "By-product" pricing strategy is based on setting prices for
byproducts or secondary products generated during the main
production process. This strategy involves leveraging the
production of byproducts to generate additional revenue for the
company.

An example of this strategy could be a dairy company that

produces cheese and also generates whey as a byproduct.
Instead of disposing of the whey, the company could set a price
to sell the whey to other companies that use it as an ingredient in
the production of other products, such as protein supplements or
animal feed.

In this way, the company obtains additional income by leveraging

the production of whey and setting a price to sell it. This strategy
can also be a way to reduce production costs since the
byproduct can be used to generate revenue instead of being
discarded.
 07
Product bundle
pricing
Product bundle pricing strategy is based on offering multiple products or services together
as a bundle and establishing a single price for the set rather than selling them separately.

This pricing strategy is effective because customers perceive greater value in getting
multiple products together at a lower price than if they bought them separately.
Additionally, it can also incentivize customers to purchase more products than they
originally intended, which can increase the total sales value.

An example of Product bundle pricing is a "combo menu" in a fast-food restaurant, where

multiple food items (such as a burger, fries, and a drink) are offered together for a lower
price than if purchased individually. Another example could be a software package that
includes several programs or applications for a lower price than if purchased separately. In
both cases, the goal is to attract customers to buy more products together and increase
the total sales value.
 08
Product unbundle
pricing
The "product unbundle pricing" strategy is based on offering
products or services that were previously sold as a package,
but are now offered as separate products, each with an
individual price. This allows customers to choose the elements
they need and pay only for them, instead of having to buy a
complete package that may include elements they do not
need or want.

An example of this strategy is the business model of low-cost

airlines such as Ryanair or Spirit Airlines. These airlines offer very
low base fares but then charge additional fees for services that
are traditionally included in the price of an airline ticket, such
as seat selection, checked baggage, food and drinks
onboard, and other options.

In this way, airlines can offer very low prices to attract

customers who are looking to save money but still generate
revenue from those who want additional services. This
approach has proven very effective for low-cost airlines and
has been adopted by other industries, such as mobile phone
and video streaming services.
 09
Discount and
allowance pricing
The "Discount and allowance pricing" strategy is based on
offering reduced prices to customers who meet certain
specific conditions, such as making purchases in large
quantities or buying products within a certain period of
time.

Additionally, additional bonuses or discounts can also be

offered to promote customer loyalty or trial of new
products.

An example of this strategy is when a company offers a

10% discount on the purchase price to customers who buy
more than 100 units of a particular product. Another
example could be a "buy one get one free" offer to
promote a new product or increase sales of a product
that is not doing well in the market. These tactics can be
effective in stimulating demand and improving a
company's sales in the short term.
 10
Segmented
pricing
Price segmentation is a strategy where prices are
adjusted based on various factors and customers'
willingness to pay, in order to increase profits. It involves
dividing customers into groups that are willing to pay
the same price for a product. An example of price
segmentation is seen in the airline industry, where
airlines offer different fares for different customer
segments.

An example of segmented pricing can be seen in the

airline industry. Airlines often use segmented pricing to
maximize profits and attract different customer
segments. For example, an airline may offer discounted
fares to students, seniors, and military personnel. They
may also offer higher fares for business travelers and
those who need to travel on short notice.
 11
PSYCHOLOGICAL
pricing
Psychological pricing is a marketing strategy that uses pricing
techniques to influence consumer behavior and perception by
tapping into their emotions and psychology. The goal is to make
prices appear more attractive or affordable, and to encourage
consumers to make a purchase.

Psychological pricing can be a powerful tool in influencing

consumer behavior and can be effective in increasing sales and
revenue for businesses.

One example of psychological pricing would be:

a product might be priced at $9.99 instead of $10.00. This pricing
strategy creates the illusion of a lower price in the consumer's
mind, even though the actual difference is only one cent.
 12
PROMOTING
pricing
Promotional pricing can be an effective marketing tool to
drive sales, clear inventory, or introduce new products or
services. However, it's important for businesses to carefully
plan and execute promotional pricing strategies to ensure
they don't negatively impact the brand's reputation or long-
term profitability. it is used as a strategy for businesses to
promote a product or service by offering it at a lower price
than its usual cost.

An example of promotional pricing is: When "back to

school" sale where a clothing store offers a 20% discount on
all school supplies, backpacks, and uniforms. This promotion
is aimed at parents and students preparing for the
upcoming school year and is designed to attract customers
to the store and increase sales during the back-to-school
shopping season.
 13
GEOGRAPHICAL
pricing
Geographical pricing can be an effective pricing
strategy for businesses that operate in multiple regions
or countries. However, it can also be complex to
implement and may require careful consideration of
factors such as logistics, pricing structures, and
competition in each region.

An example of Geographical pricing is:

the difference in the price of gasoline in different parts
of a country. The price of gasoline is usually higher in
urban areas than in rural areas, due to higher
demand and competition. This is an example of zone
pricing, where the price is adjusted based on the
geographic location and market conditions.
 14
Dynamic and
personalized
pricing
Dynamic prices are a strategy that sets prices by adjusting them to
supply and demand, that is, the price is not fixed if the characteristics
of the market do not fluctuate, on the other hand, customized prices
setting different prices for the same product or service, This strategy
allows establishing the price at the maximum point that the latter
would be willing to pay, capturing and capitalizing on the consumer's
need.

An example of dynamics would be, advertising campaigns that

change automatically according to the activities of the users on your
website, application, commercial page, etc. In other words, when
someone visits your website, the Facebook pixel fires. This means that
the platform starts collecting data
.
An example of custom would be, Custom pricing is becoming
increasingly important in retail. Some customers are more willing to
pay than others. You can capitalize on this concept by implementing
techniques to predict and charge the exact amount that a given
customer will be willing to pay.
 15
International
pricing
The prices are never the same as in
international markets, they vary according to
taxes, the structure of costs, the need of the
market of said place, the currency exchange
rates, the rates governed by the area and
many other reasons.

As an example we have car manufacturers

since they are recognized, due to price
differences and global products such as
computer software.
 Referencias
https://prezi.com/p/u3xjef2kh6-y/precios-de-productos-opcionales/
https://www.centralamericadata.com/es/article/home/Ubicaciones_nivel_
de_consumo_e_intereses
https://prezi.com/p/u3xjef2kh6-y/precios-de-productos-opcionales/
https://blog.hubspot.es/marketing/estrategias-precio
https://www.questionpro.com/blog/es/estrategia-de-precios/
https://rockcontent.com/es/blog/estrategia-de-precios/
https://www.unir.net/marketing-comunicacion/revista/estrategias-precios/