Types of Pricing Strategies

 1. Types of Pricing Strategies

• Demand Pricing. Demand pricing is also called demand-based pricing, or customer-based pricing. …
• Competitive Pricing. Also called the strategic pricing. …
• Cost-Plus Pricing. …
• Penetration Pricing. …
• Price Skimming. …
• Economy Pricing. …
• Psychological Pricing. …
• Discount Pricing.2. Be careful with markup!  Must be able to cover ALL costs and understand how your business model impacts pricing (retail versus straight ecommerce). Retailers buy products at 40-50% off SRP.  Then they demand allowances for returns, damage, cooperative advertising, and often pay you in 90 days. If your fully landed cost for a product is $5/unit, you may need to sell it for $20-$25 in order to make sufficient margin.
• – Read the Power Point Chapter attached to this announcement.
• – Watch the You Tube Video Pricing Strategies: How to Price a Product ( https://www.youtube.com/watch?v=4t_MEO_la_k )

Submit a 3-5 page written paper that answers these questions: What are the best ways to price a NEW product?  And, how does pricing impact the consumer’s perception of value?