New Product Pricing Strategies
The most challenging stage of product is introductory stage. In introductory stage of new product companies face the challenge of setting the prices for the first time. Companies have only one chance to get new product price right. They can choose among the two strategies i.e. market skimming pricing and market penetration pricing.
Market Skimming Pricing
Companies interested in profitable sale set initially high price for a product to skim maximum revenue from the segments which is willing to pay high price and then slowly move to low price.
Market Penetration Pricing
Companies interested in large market share set low price for a product in order to attract large number of customer.
Product Mix Pricing Strategy
The strategies of setting the price for a product when the product is part of product mix.
Product Line Pricing
Same product with different features the price is kept on the bases of the cost difference between the products in product line and customer evaluation of features and competitor prices. For example Sony offering different television with different features at different prices.
Optional Product Pricing
It’s the pricing of the main product with the accessories or optional product for example car with power window CD changer and car without power window and CD changer.
Captive Product Pricing
Pricing of the product which must be used with the main product for example films must be use with VCR, CD must be use with CD player etc.
Product Bundle Pricing
Making the bundle of different product and price the bundle at a reduce price. It is basically for selling the slow moving items.