9 types of pricing. Pt.2

Set pricing

What it is: you combine complementary products into sets and sell sets for lower price than those goods separately.

➕ A fast way to get rid of stock leftovers and gain a reputation of a cheap shop. ➖ If the price of a set was not calculated correctly, you may lose some money on discounts.

Psychological pricing

What it is: you set a price a little bit lower than on a market in a whole and a person who is acquainted with the market pricing is more likely to buy your goods.

➕ Even small discount gives you an advantage. ➖ You must be targeted to people who is well-acquainted with the prices on a market and will notice your good offer.

Premium pricing

What it is: you emphasise exclusiveness and uniqueness of a product by a high price.

➕ High margin. ➖ Again, high prices scare away potential customers, so you have to invest a lot in marketing and promotion.

Optional pricing

What it is: you charge extra money for additional options (like seats near the window in lowcosters).

➕ Good revenue without loosing a reputation of a discounter. ➖ Not suitable for every business, annoys some clients.

Economical pricing

What it is: you set a low price for your products by reducing the price of producing, packaging etc.

➕ Low price makes your products attractive. ➖ Your products are hard to notice as packaging is not very bright and you didn't invest in promotion.

Now you know everything about how to set a good price for your products.

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