pricing strategies used by a buisness

•  Premium Pricing

  • This is when a business sets a high price to give the product a sense of luxury, quality, or exclusivity. Customers may believe the product is better because it costs more.
  • Premium pricing is typically used when the product is new, unique, or aimed at wealthier customers. Often used by strong, well-known brands.
• Low Pricing

  • This is when a business sets prices lower than competitors to attract customers quickly. It can help increase sales and market share, especially in competitive markets.
  • Used when the business wants to enter a new market, get rid of extra stock, or appeal to price-sensitive customers.
• Competitive Pricing

  • This is when a business sets its prices close to what competitors are charging. It helps the business remain attractive without starting a price war.
  • Competitive pricing is typically used when here are lots of similar products in the market and customers can easily compare prices.