In cost-plus pricing, the profit percentage is decided and added to the cost of goods sold (COGS) to get the product’s price.
Here, the price is determined by demand and supply. Your price will be close to the price of your competitors.
The goal of dynamic pricing is to allow a company that sells goods or services to adjust prices on the fly in response to market demands.
In Freemium pricing, a basic free product/s is offered to the customer for free. The customer has the option to buy priced products that offer more benefits and features.
Also known as discount pricing strategy, in this kind of pricing one product is launched at a high price. After some time, the product is offered at a high discount.
Hourly pricing works in service-related businesses where the price is charged on a man-hour basis. Consultants and freelancers use hourly pricing.
In this pricing strategy, the product is launched at a premium price. Innovative technology products are priced this way. E.g. iPhones.
This is the opposite of skimming pricing. In this pricing type, the product is launched at a low price compared to the competitor’s price to attract new customers.
Premium prices are usually charged by companies who have built a good brand name or are selling products in the luxury segment.
Here, the price is charged on a project basis. This kind of price is also charged by consultants, contractors, and freelancers.
In Value-Based pricing, the price is a percentage of the value the product brings to the customer. A lot of B2B products are priced in this way.
In Bundle-pricing, products are bundled together and offered at a price less than the price of the individual items if bought separately.
Psychological pricing involves playing with the customer’s mind. For example, pricing a product at $9.99 instead of $10 is a type of psychological pricing.
In this type of pricing, the price may vary as per the geographic location. Sometimes prices can vary between different retailers in different neighborhoods.