A pricing strategy considers, among several other 

things, segments, ability to pay, market

conditions, competitor actions, trade margins, and input costs. It is aimed at specific
customers and competes with them.
There are several pricing strategies: Premium pricing: High price is used as a primary
ingredient in premium pricing. Such pricing strategies are effective in segments and
industries where the company has a significant competitive advantage. Penetration pricing:
the price is set artificially low in order to quickly gain market share. When a new product is
introduced, this is done. It is expected that prices will rise. Economy pricing: a low-cost price.
Margins are razor thin, and overheads such as marketing and advertising costs are
extremely low. Targets the mass market and has a significant market share. Skimming
strategy: a high price is charged for a product until competitors allow, at which point prices
can be reduced. The goal is to recover as much money as possible before the deadline.
These are the four basic strategies, variations of which are used in the industry.