Cost-Plus Pricing, also known as markup pricing, is a pricing strategy where a company determines the selling price of a product or service by adding a fixed percentage (the markup) to total costs. This strategy is straightforward and ensures the company covers its...
If you look closely, you’ll see psychological pricing tactics all around you. Retailers like Amazon and Apple often price items just below a round number (e.g., $9.99 instead of $10.00); many retailers use bundled pricing like “BOGO” (buy one, get one) to make the...
If you’ve ever visited a store to purchase a heavily discounted product and picked up a few other items ‘while you were at it’, you’ve likely succumbed to a loss leader pricing and product strategy. A loss leader strategy involves selling a product or service at a low...
If you’ve visited a major city during a rainstorm, you might have noticed the prices for umbrellas sold by street vendors tend to rise when the rain falls. What started out with a $10.00 price tag may rise considerably during a rainstorm. This is an example of...
Bundling is a marketing strategy that includes selling multiple products or services as a single package at a discounted price. The goals of bundling include simplifying the purchasing process for your customer, encouraging customers to purchase additional products,...
