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
Learn More
Research Types Jonathan Poland

Research Types

Research is the process of systematically seeking and interpreting knowledge through inquiry, observation, experimentation, and analysis. It is a way…

Dynamic Pricing Jonathan Poland

Dynamic Pricing

Dynamic pricing refers to the practice of changing prices in real time in response to changes in market conditions or…

Employee Benefits Jonathan Poland

Employee Benefits

Employee benefits are additional forms of compensation offered to employees as part of their overall remuneration package. These benefits can…

Process Capital Jonathan Poland

Process Capital

Process Capital is a term that refers to the financial resources that a company uses to fund its operations and…

Operations Planning Jonathan Poland

Operations Planning

Operations planning involves identifying and implementing strategies and tactics to optimize the core processes and practices that enable a business…

Business Efficiency Jonathan Poland

Business Efficiency

Business efficiency refers to the effectiveness with which a company or organization converts inputs, such as capital, labor, and materials,…

Lifecycle Cost Analysis Jonathan Poland

Lifecycle Cost Analysis

Lifecycle cost analysis is a tool used to evaluate the total cost of owning and operating a product, system, or…

Bargaining Power Jonathan Poland

Bargaining Power

Bargaining power is a concept in negotiation theory that refers to the relative ability of parties to influence each other…

Risk Evaluation Jonathan Poland

Risk Evaluation

Risk evaluation is the process of identifying and assessing the risks that an organization or individual may face. It is…

Latest Thinking

Qualified Small Business Stock (QSBS) Jonathan Poland

Qualified Small Business Stock (QSBS)

Qualified Small Business Stock (QSBS) refers to a special classification of stock in the United States that offers significant tax…

Barrick Gold Jonathan Poland

Barrick Gold

Barrick Gold Corporation (NYSE: GOLD) is a significant player in the global economy, particularly within the gold mining industry. Its…

Newmont Corporation Jonathan Poland

Newmont Corporation

Newmont Corporation (NYSE: NEM), being the world’s largest gold mining corporation, with extensive operations in mining and production of not…

Gold is Money Jonathan Poland

Gold is Money

Overview The history of gold as money spans thousands of years and has played a pivotal role in the economic…

What is Leadership? Jonathan Poland

What is Leadership?

In the modern business world, where rapid changes, technological advancements, and global challenges are the norm, effective leadership is more…

Product Durability Jonathan Poland

Product Durability

A durable product, often referred to as a durable good, is a product that does not quickly wear out or,…

Durable Competitive Advantage Jonathan Poland

Durable Competitive Advantage

The most important aspect of durability is market fit. Unique super simple products or services that does change much if…

Praxeology Jonathan Poland

Praxeology

Praxeology is the study of human action, particularly as it pertains to decision-making and the pursuit of goals. The term…

Business Models Jonathan Poland

Business Models

Business models define how a company creates, delivers, and captures value. There are numerous business models, each tailored to specific…