Marketing Blog

  Common Pricing Strategies By Connor Williams The price of a product or service can be one of the most important decisions a business will have to make. The price will either attract your customers or scare them away, but this depends on the value of your product/service. In this blog post, I will be explaining 3 of the most common pricing strategies that business’s use to this day. 1) Cost-based Pricing This strategy is where a company will set the price based on how much it costed them to produce, promote, and distribute their product/service. Image 1 This can be a good way to keep your profit margin consistent and reliable but this will only be achieved if a company can successfully convince their target consumers that their product/service is as valuable as the price. From this point, it is easier to further develop a definitive price for the product/service. 2) Value-based Pricing This strategy is essentially the inverted version of cost-based pricing. A company sets the price ba