7 Pricing Strategies to Grow Sales
Your pricing strategy must drive buyers to your product or service. These seven pricing strategies can maximize sales opportunities:
Bundle pricing: This strategy involves combining several products and services, typically priced differently, into one package and charging a price that is lower than the total of the prices of the individual pieces.
Captive pricing: This involves a core product that requires accessory products to deliver optimal value. Businesses use this strategy to generate brand loyalty and create additional sales opportunities.
Competitive pricing: Businesses research the prices of their closest competitors and set the price of their product to match or beat the competitor’s price.
Economy pricing: Businesses price their products and services low, which means small per-item margins, but large sales volume to remain profitable.
Penetration pricing: Businesses use artificially low prices to entice customers away from competitors and gain market share.
Price skimming: This short-term strategy involves setting high initial prices and then lowering them gradually over time, including offering discounts.
Psychological pricing: The aim of psychological pricing is to use customers’ emotional responses to encourage sales. This strategy may include “buy one, get one” offers and reducing whole-dollar prices by a penny or two.