Pricing Techniques

Pricing Techniques

Pricing Techniques Jonathan Poland

Pricing involves carefully considering various factors in order to determine a price that will maximize a company’s profits over the long term. This includes factors such as supply and demand, customer behavior, competition, and industry standards and regulations. The price of a product or service can have a significant impact on a company’s profitability and overall brand value. The following are some common terms in pricing including economics, strategy and behavioral considerations.

Customer Behavior
Cognitive and emotional factors in pricing.

  • Bargaining Power
  • Price Sensitivity
  • Sticky Prices
  • Willingness To Pay

Pricing Models
Structures and methods of pricing.

  • Customary Pricing
  • Flat Pricing
  • Market Price
  • Premium Pricing
  • Price Optimization
  • Price Points
  • Price Promotion
  • À La Carte

Pricing Strategies
Common pricing strategies.

  • Algorithmic Pricing
  • Decoy Effect
  • Dynamic Pricing
  • Everyday Low Price
  • High-Low Pricing
  • Loss Leader
  • Price Discrimination
  • Price Leadership
  • Price Skimming
  • Revenue Management
  • Sales Promotion

Pricing Economics
The basic forces of pricing driven by supply, demand, consumer perceptions and competitive behavior.

  • Commoditization
  • Equilibrium
  • Inferior Good
  • Marginal Utility
  • Market Value
  • Pricing Power
  • Snob Effect
  • Superior Good
  • Value
  • Veblen Goods

Competition & Pricing
The effect of competition on prices.

  • Benchmark Price
  • Commodity
  • Competitive Advantage
  • Competitive Parity
  • Monopoly
  • Perfect Competition
  • Predatory Pricing
  • Price Competition
  • Price Umbrella
  • Price War

Compliance & Ethics
Pricing related regulations and ethics.

  • Price Fixing
  • Price Gouging
  • Sale Above Advertised Price
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