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Basic Micro2
Basic Micro2
1. Freemium
A combination of the words “free” and “premium,” freemium pricing is when
companies offer a basic version of their product hoping that users will eventually pay
to upgrade or access more features.
2. Premium Pricing
Also known as prestige pricing and luxury pricing, a premium pricing model is
when companies price their products high to present the image that their products
are high-value, luxury, or premium.
3. Hourly pricing
Also known as rate-based pricing, is commonly used by consultants, freelancers,
contractors, and other individuals or laborers who provide business services.
5. Project-based pricing
Is the opposite of hourly pricing — this approach charges a flat fee per
project instead of a direct exchange of money for time. It is also used by
consultants, freelancers, contractors, and other individuals or laborers who
provide business services.
6. Subscription pricing
-A business that sets high prices may be able to generate higher profits, but it
may also have a smaller market share.
-A business that sets low prices may be able to attract more customers and
increase its market share, but it may also have lower profits.
-A consumer who is on a tight budget may be more likely to purchase products
and services that are priced lower.
-A consumer who is looking for a premium product or service may be more
willing to pay a higher price.
- If the price level of food increases, it can lead to food insecurity for
low-income households.
- If the price level of housing increases, it can make it more difficult
for people to afford to buy or rent homes.
- If the price level of goods and services exported by a country
increases, it can make those goods and services less competitive in the
global market.
- If the price level of goods and services imported by a country
decreases, it can make those goods and services more affordable for
consumers and businesses.