Commonly Used Pricing Methods -...

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Commonly Used Pricing Methods 1 Premium Pricing : Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries.
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Commonly Used Pricing Methods 2 Penetration Pricing : The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.
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Commonly Used Pricing Methods 3 Economy Pricing : This is a no frills low price. The cost of marketing and manufacturing are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.
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Commonly Used Pricing Methods 4 Price Skimming : Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply.
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Commonly Used Pricing Methods 5
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