Pricing is an important decision involving both qualitative and quantitative considerations. 🧭
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From start-ups to strong incumbents, many companies still struggle to find the market clearing price-contrary to what you were taught in your microeconomics class, such a price does not exist in real life 😉
Given current inflationary environment and incessant decline in the purchasing power, this decision is now harder than it has ever been.
Whether your company follows a value-based, cost-based, or a hybrid pricing model, there are still some guidelines working in the pricing universe.
For example, you should know how to set relative prices for the following product pairs: razor and blades, video game hardware and software, printers and cartridges.
In this article, I lay out the fundamentals of different pricing strategies and which strategy makes sense for your company. Comparing different pricing strategies and the rationale behind, I also share examples of different pricing strategies from real-world companies and that particular pricing strategy is suitable for that specific company. The content can be utilized as a blueprint or guide concerning your efforts to determine the price of your services and products.