Different types of pricing tactics | nibusinessinfo.co.uk

Different types of pricing tactics · Discounting · Odd value pricing · Loss leader · Skimming · Penetration. Skiptomaincontent >>Coronavirus(COVID-19)|Latestsupportandguidance> >>EUExit|Informationandadviceforyourbusiness> Guides Findguidesbysector Creativeindustries Foodanddrink Manufacturing Propertymanagement Retail Construction Tourism Transport Findguidesbytheme Startingabusiness Finance Taxes Employmentandskills Healthandsafety Efficiencyandenvironment Businesspremisesandrates InnovationandR&D Salesandmarketing IT Exportingandimporting Growyourbusiness Buyorsellabusiness Resources MyNewBusiness NorthernIrelandbusinesssupportfinder Sampletemplates,forms,letters,policiesandchecklists Licencefinder Findacasestudy Doitonline News Events Breadcrumb Home Guides Salesandmarketing Pricing Differenttypesofpricingtactics Priceyourproductorservice Differenttypesofpricingtactics Guide Differentpricing tacticscanhelpyouattractmorecustomersandmaximiseprofits. Thefollowingisalistoftypesofpricingstrategiesthatyourbusinessyouusetoboostsales.DiscountingOfferingspecially-reducedpricescanbeapowerfultool.Thiscouldbeaclearancediscounttoselloldstock,adiscountformakingmultiplepurchasesofthesameorsimilarproducts,oryoucouldofferbulkdiscountstoencouragelargerorders.Youshouldbeabletomakethesemoreprofitablethroughlowercosts.Butbecareful.Ifyoudiscounttoomuch,customersmayquestionyourfull-ratepricingorseeyouasacheapoption,makingitdifficulttochargefull-ratepricesinthefuture.OddvaluepricingUsingtheretailer'stacticofsellingproductsfor£9.99insteadof£10canbeusefulifpriceisanessentialpartofcustomers'buyingdecisions.Somecustomersperceiveoddvaluepriceslikethisasbeingmoreattractive.LossleaderThisinvolvessellingaproductataloworevenloss-makingprice.Althoughyoumaynotmakeaprofitsellingthisproduct,youcouldattractcustomerswhowillalsobuyother,moreprofitableproducts.SkimmingIfyouhaveauniqueproductorservice,youcansellitatahighprice.Thisisknownasskimming-butyouneedtobesurethatwhatyouaresellingisunique.Otherwiseyoumayjustpriceyourselfoutofthemarketifthereiscrediblecompetition.PenetrationThisistheoppositeofskimming-startingatalowpriceandgainingmarketsharebeforecompetitorscatchupwithyou.Onceyouhavealoyalcustomerbase,youshouldbeabletofindwaystoraisepriceslater.See raisingorloweringprices. Inthisguide: BooktraversallinksforDifferenttypesofpricingtactics ‹Cost-plusversusvalue-basedpricing Up Raisingorloweringprices› Printer-friendlyversion Alsoonthissite Understandyourcustomers'needs Pricinginformation Salespromotionexamples Knowyourlegalresponsibilities Doyouneedalicence? 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