Instead of Starting with a Low Price and Increasing It Over Time, a Business Initially Sells a Product for a High Price and Then Lowers the Price as the Product Loses Market Demand, Relevance or Novelty.
Every Time You See a Store with a Big Discount Section, You’ve Witnessed High and Low Tactics in Action.
This Pricing Strategy Is Mostly Use by Retailers for Seasonal Products, Such as Fashion and Outdoor Stores.
You Can Use High and Low Pricing to Maintain Sales as Consumer Demand Waxes and Lines. for Example, You Can Sell Winter Clothing at Full Price in Winter, Then Discount It in Spring to Keep Sales Flowing Until the Summer Season Hits.
Skimming Pricing Strategy
Skimming Pricing Is When a Business Charges the Highest Price They Can for a New Product, Then Gradually Lowers the Price Over Time as the Product Becomes Less Popular.
This Pricing Model Differs from High-Low Pricing Diabetes Email List Because the Aim Is to Keep Prices as Low as Possible Over a Long Period of Time to Maximize Profits.
Tech Companies Often Employ This Strategy with Products Like Smartphones, Computers and Video Game Consoles.
Loss Leader Pricing Strategy
Loss Leader Pricing Is the Very Low Price at Which a Business Sells Many Products – Sometimes Under Gear – to Attract Customers. These Businesses Will Then Sell Other Products at a Higher Cost.
This Strategy Is Mostly Use by Supermarkets, Big Box Stores and Discounters.
Arguably, Loss-Leader Pricing Isn’t as Effective as Smartphones. According to Pymnts, 43.3% of Shoppers Compare Prices In-Store and Online.
Geographic Pricing Strategy
Geographic Pricing Is When a Business’ Products or Services Differ Depending on Where They Are Sold.
This Pricing Strategy Takes into Account CNB Directory Many Different Variables. for Example, Rural Locations Often Have Slower Economies and Lower Average Wages Than Larger Cities. That’s Why Supermarkets Usually Sell the Same Products in Rural Locations, and More Money in Larger Cities.
