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10 Ways To Increase Price Without Increasing Price

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Rajiv vyas

This document discusses various pricing strategies including premium pricing, penetration pricing, economy pricing, price skimming, psychological pricing, product line pricing, pricing variations, optional product pricing, captive product pricing, product bundle pricing, promotional pricing, geographical pricing, and value pricing. It also lists ten ways to increase prices without explicitly raising prices such as revising discounts, changing minimum order sizes, and charging for additional services.

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10 Ways To Increase Price Without Increasing Price

Uploaded by

Rajiv vyas
47 views8 pages
This document discusses various pricing strategies including premium pricing, penetration pricing, economy pricing, price skimming, psychological pricing, product line pricing, pricing variations, optional product pricing, captive product pricing, product bundle pricing, promotional pricing, geographical pricing, and value pricing. It also lists ten ways to increase prices without explicitly raising prices such as revising discounts, changing minimum order sizes, and charging for additional services.

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10 Ways to Increase Price Without Increasing Price

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This document discusses various pricing strategies including premium pricing, penetration pricing, economy pricing, price skimming, psychological pricing, product line pricing, pricing variations, optional product pricing, captive product pricing, product bundle pricing, promotional pricing, geographical pricing, and value pricing. It also lists ten ways to increase prices without explicitly raising prices such as revising discounts, changing minimum order sizes, and charging for additional services.

Copyright:

Attribution Non-Commercial (BY-NC)
Download as PPT, PDF, TXT or read online from Scribd
Download as ppt, pdf, or txt
47 views8 pages

10 Ways To Increase Price Without Increasing Price

Uploaded by

Rajiv vyas
This document discusses various pricing strategies including premium pricing, penetration pricing, economy pricing, price skimming, psychological pricing, product line pricing, pricing variations, optional product pricing, captive product pricing, product bundle pricing, promotional pricing, geographical pricing, and value pricing. It also lists ten ways to increase prices without explicitly raising prices such as revising discounts, changing minimum order sizes, and charging for additional services.

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Pricing Decisions

• Pricing strategies
• Pricing exercise
• Ten ways to ‘increase’ prices
without increasing price -
Winkler
Quality
Low High

Economy Penetration
Strategy e.g. Telewest
Low e.g. Tesco
spaghetti
cable phones
Price
Skimming Premium
High e.g. New film or e.g. BA first
album class
Pricing strategies
• Premium pricing
• Uses a high price, but gives a good product/service
exchange e.g. Concorde, The Ritz Hotel
• Penetration pricing
• offers low price to gain market share - then
increases price
• e.g. France Telecom - to attract new corporate
clients (or Telewest cable)
• Economy pricing
• placed at ‘no frills’, low price
• e.g. Soups, spaghetti, beans - ‘economy’ brands
• Price skimming
• where prices are high - usually during introduction
• e.g new albums or films on release
• ultimately prices will reduce to the ‘parity’
• Psychological pricing
• to get a customer to respond on an emotional, rather than
rational basis
• .e.g 99p not £1.01 ‘price point perspective
• Product line pricing
• rationale of a product range
• e.g. MARS 32p, Four-pack 99p, Bite-size £1.29
• Pricing variations
• ‘off-peak’ pricing, early booking discounts,etc
• e.g Grundig offers a ‘cash back’ incentive for expensive goods
• Optional product-pricing
• e.g. optional extras - BMW famously under-equipped
• Captive product pricing
• products that complement others
• e.g Gillette razors (low price) and blades (high price)
• Product-bundle pricing
• sellers combine several products at the same price
• e.g software, books, CDs.
• Promotional pricing
• BOGOF e.g. toothpaste, soups, etc
• Geographical pricing
• different prices for customers in different parts of
the world
• e.g.Include shipping costs, or place onPLC
• Value pricing
• usually during difficult economic conditions
• e.g. Value menus at McDonalds
Ten ways to ‘increase’ prices
without increasing price - Winkler
• Revise the discount structure
• Change the minimum order size
• Charge for delivery and special services
• Invoice for repairs on serviced equipment
• Charge for engineering, installation
• Charge for overtime on rushed orders
• Collect interest on overdue accounts
• Produce less of the lower margin models in
the line
• Write penalty clauses into contracts
• Change the physical characteristics of the
product

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