The top five pricing strategies to price a product are: 1. Cost-plus pricing: This involves adding a mark-up percentage to costs; which varies between products, businesses, and sectors. 2. Competitive pricing: Setting a price based on what the competition charges. 3. Price skimming: Setting a high price and lowering it as the market evolves. 4. Penetration pricing: Setting a price low to enter a competitive market and raising it later. 5. Value-based pricing: Setting a price based on the perceived value to the customer rather than the cost of the product or historical prices.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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