Pricing Stratagies

• What is cost-plus pricing?

  Calculate costs and add a mark-up
• What does competitive pricing involve?

  Setting a price based on competition
• What is the purpose of price skimming?

  To set a high price and lower it later
• When would a business use penetration pricing?

  To enter a competitive market with low prices
• What is value-based pricing based on?

  What the customer believes it's worth
• What are the 5 most common pricing strategies?

  1. Cost-plus pricing
  2. Competitive pricing
  3. Price skimming
  4. Penetration pricing
  5. Value-based pricing