Pricing Policies

Mitch Lindsey

Flexible-Price Policy

• This is a policy where customers pay different prices for the same type or amount of merchandises.

• For example almost all goods that you can buy are under this policy.

One-Price Policy

• This is where all customers are charged the same price for all the goods and services offered for sale.

• For example rent

Prestige Pricing

• Is giving a product a high price to convey the idea that it is a high-end product.

• For example designer clothing.

Odd/Even Pricing

• A psychological pricing method used to get customers to buy a product by simply lessening the amount a few cents and giving it an odd amount.

• For example $99.99 instead of $100

Price Lining

• This is a method used by retailers to group certain price ranges together, and keeping the most expensive group further away from the cheapest group.

• For example the most expensive product will be in the back of the store or on the top tow of shelves at a store. Cheaper products will be in the front or bottom shelves of a store.

Promotional Pricing

• When a new product is available for sale some retailers offer it at a higher or lower price for a short time to increase sales.

• For example new shoes cost $150, but after a few months the same shoes can cost $80.

Multiple-Unit Pricing

• Is used to set a single price for two or more units of the same product to make the consumer feel they are gaining more by buying more.

• For example buy 3 candy bars for $2

Bundle Pricing

• This is combining several products and offering the bundle at a reduced price. This strategy can be effective at selling product accessories that customers would not buy outside the bundle.

• For example Cable Companies use it to persuade customers into buying premium movie channels.