Similarly non workable is a variant where the marketer is basically trying to

Similarly non workable is a variant where the

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Similarly “non-workable” is a variant where the marketer is basically trying to pass off a poorer quality product at a higher price, and consumers in the short run itself will find that out and discard the item. 2. Geographic Pricing In this method one tries to price a product, factoring in geographic preferences. Thus if there is a preference for a particular product or product variant at a particular location, it may make commercial sense, to price the same slightly higher, in that particular location. It may also make sense to price the product slightly less in areas of low preference, to build more consumption. This may particularly work for women apparel and food items. 3. Sealed bid Pricing Big projects particularly in the Government sector may call for sealed tenders. The procedure may require bidders to put up their quotations in sealed bids, which are opened on a predetermined date for evaluation and acceptance. In such cases the marketer has to evolve his price estimate on the basis of marketing considerations particularly what way the likely bid from other competitor may be anticipated. 4. Skimming the Cream, Pricing Organizations which may come out with absolutely new products, based on costly research or otherwise, and where they may not anticipate competition response immediately, due to either the nature of the products itself or the investments involved in making such products, may for some time price the product very high and make as much high profit as possible in the time window available to them. This however will work if the product is of a nature that has high demand potential. This works successfully in the case of research based new pharmaceutical molecules or high technical products which have a great latent need in the market.. The marketer however must be careful about this pricing, because this method may cause a consumer backlash. 75
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PRICING 5. Loss Leader Pricing At times the marketer can strategically price a product/service at a substantially lower price, with the objective of gaining market acceptance, and subsequently when the buyer is used to that particular product, the marketer can hike the price of accessories, parts, supplements at a substantially high rate. Examples of these can be in the area of large machines such as JCB, Excavators, Cranes etc… where once an organization has purchased a particular machine; they would have to depend upon the supplier for spare parts and accessories. Printers are also an example of these as buyers of the printers have to buy the ink cartridges from the same manufacturers. Similar instances can also be seen in the case of system software where subsequent upgrades or patches have to be bought from the original manufacturers. 6. Bait Pricing Just like fishing baits where the bait is attached to the fishing line to lure the fish, in this type of pricing the marketer advertises a lower price as an offer to attract the customer into the shop, where products at regular
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