Retail Pricing Strategy

1. Everyday low pricing

2. High-low pricing
3. Creaming or skimming
4. Decoy pricing
5. Freemium
6. Limit Present
7. Penetration present
8. Predatory Pricing
9. Premium Pricing
10. Price discrimination
11. Price leadership
12. Psychological pricing
Predatory Pricing
Predatory pricing is a method in which a seller sets a price so
low that other suppliers cannot compete and are forced to exit
the market.
• Pros: Elimination of Competitors-Consumers will at first benefit from
unexpected lower prices that the predatory company is selling at. They also
might .
 Penetration pricing

Often preferred by newer brands who are set to enter the market, penetration
pricing is the practice of initially keeping product prices low so as to introduce
the brand and its products to as many people as possible.
• Pros: Market penetration is much easier than entering with an
average price, and you can quickly earn new customers.

• Cons: It’s not sustainable in the long run and should only be a short-
term pricing strategy.
 Premium pricing
Premium pricing occurs when prices are set higher than the rest of the
market to create perceived value, quality, or luxury.

• .
• Pros:Profit margins are higher since you can charge much more than
your production costs.

• Cons: This type of pricing strategy only works if customers perceive

your product as premium.
Recommendation
• Recommend one or more of the strategies.
• Summarize the results if things go as proposed.
• What to do next.
• Identify action items.