PRICING STRATEGIES

OF SERVICES

LIKHITH M N
USN :- 1DA18MBA20
What is Pricing Strategy?
• A pricing strategy is a model or method used
to establish the best price for a product or
service. Pricing strategies help you choose
prices that maximize profits and shareholder
value while considering consumer and market
demand.
Pricing Strategies that Link to
the Four Value Definitions
Pricing Strategies When the Customer
Defines Value as Low Price
DISCOUTING:- is a reduction on the regular
selling price of any good or service. The
motivation is to attract consumers and boost
sales.
ODD PRICING:- Odd pricing is a practice of
pricing a product just below the nearest round
number. The prices ending in nine are most
popular followed by those ending in five.
 SYNCHRO-PRICING:- Synchro-pricing is the use
of price to manage demand for a service by using
customer sensitivity to prices. Certain services, such
as tax preparation, hotels, and theatres have demand
that fluctuates overtime as well as constrained supply
at peak times.

 PENETRATION PRICING:- is a pricing strategy

that sets a low initial price for a product. The goal is
to quickly attract new customers based on the low
cost.
 Pricing Strategies When the Customer
Defines Value as Everything Wanted in a
Service
 PRETIGE PRICING:- a pricing strategy in
which prices are set at a high level, recognising
that lower prices will inhibit sales rather than
encourage them and that buyers will associate a
high price for the product with superior quality;
also called Image Pricing.

 SKIMMING PRICING :- Price skimming is a

product pricing strategy by which a firm charges
the highest initial price that customers will pay.
As the demand of the first customers is satisfied,
the firm lowers the price to attract another,
more price-sensitive segment.
Pricing Strategies When the Customer
Defines Value as Quality for the Price
Paid
 VALUE PRICING :- This widely used term has
come to mean “giving more for less”. In
current usage it involves assembling a bundle
of services that are desirable to a wide group
of customers and then pricing them lower than
they would cost alone.
 MARKETING SEGMENTATION PRICING:-
 Pricing Strategies When the
Customer Defines Value as All that
Is Received for All that Is Given
PRICE FRAMING:- in which you set a
reference price and then discount sharply
beneath it to convey value, is one way to help
consumers new to your service judge whether
you offer good value.
PRICE BUILDING:- is one method of
determining the value of your company as you
prepare to sell your business. Price building is
a valuation method that simply looks at the
hard facts assets, leases, real estate, and
goodwill.
COMPLEMENTARY PRICING:- is a
method in which one of the products is priced
to maximize the sales volume and which in turn
stimulates the demand of other
product. Complementary Demand. Complemen
tary Goods. Complementary Product.
RESULTS-BASED PRICING:-
It’s a buyer-centric pricing strategy
where work is priced based on the value it
delivers to the buyer as opposed to the seller’s
time, costs, margins, or historical prices.